So the deduction for donating a car is based on the Fair Market Value (FMV) of your car. They are many ways you can get that value for your car. The most common way would probably involve you going to the internet, and there is a number of websites out there that allow you to enter your vehicles information. Information like the type of vehicle, the year, the model and then they calculate the fair market value.
The IRS has a list of organizations that are qualified as donors, these are the only organizations you can donate to and guarantee a deduction from the IRS. However there is an exception to the rule, churches, temples, mosques and governments do not have to be on that list for them to qualify as places you can donate to. Most of the time, you are most likely going to be donating a vehicle to some kind of church, so you do not have to worry yourself with the list.
CAR DONATION
In order to get the benefit of the vehicle you have to itemize on your tax return instead of doing the standard deduction. So make sure you are doing that, otherwise it is not going to be worth doing a donation, you will be better off selling your car. You need to be honest about the Fair Market Value of your vehicle because the IRS will look for supporting documentation, including how you came up with the value.
You also have to document your donation. Get a receipt from the place you are donating to and on that receipt you should have the date, amount, address and your phone number. If you do not have that information the IRS has every right to disregard the claim. The IRS publication 4302 provides in detail further rules and guidelines.
Car Donation Tax Write Off
Next, get more FREE information on car donation tax, at our blog here: http://www.waukoo.com/cardonations.
CAR DONATION
0 comments:
Post a Comment