Donating car to a charity organization is always a good thing to do. With that, you are helping for those in need, and you are motivated more with donation of your car to a charity because you will get substantial tax return from IRS. But don't get to exited about that, because tax break that you going to get may not be that big. In the past, many people abused this way of tax deduction, so IRS changed the rules.
If your car donation is worth less then 0.00, in order to get tax return, you will just need a document from charitable organization about your car donation and value of the car.
CAR DONATION
But, if your car is valued more than 0.00, than new rules will be applied. You can find these new rules in IRS's "Revenue Provisions" in Section 884 of Title VIII. This new rules says that if your car is worth more than 0.00 your tax deduction is limited to a price from a sale of your donated car. In other words, that is the actual selling price, and not the suggested retail price of your donated car. That is in the case that charity organization wants to sell a car. But in the case that charity plans not to sell your car, but to use it in other charity work, like for transportation of people in need, then you can claim the full market value.
The charity is obligated by the law to provide you with written acknowledgment of the contribution within the 30 days, and you must attach this statement for your tax return. You cannot get tax deduction without this statement from charity organization.
But still, even with these new rules, car donation for tax deduction is very popular way for getting rid of your old car, helping to somebody in need, and having some financial benefits for yourself.
New Rules For Car Donation Tax Return
If you want to find out more about tax return on Donating Car To Charity come and visit us at http://www.donatecartocharity.info
CAR DONATION
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