Thursday, June 17, 2010
A step by step for car donation
How often have you realized that selling your car is expensive for you? Perhaps, you have realized it. Yet, most of us want to ignore this fact. We tend to look at the result o selling. We think that we will get money at the end and, our thoughts start and end there. But, if we think a little deeper, we will find that selling the car is quite a hassle. You have to have good contacts to get a customer without spending a single dollar. Otherwise, you will have to advertise your cause and wait. It is both expensive and stressful. Again, after you sell the car and received the money you have to pay some part of it as sales tax. So, there are a lot of hassles there when you sell your car. However, when you donate a car, you find yourself in a more profitable condition. You don’t have to spend a single buck in the process of donating the car. Again, the value of the car is completely deductible from the sales tax. Naturally, you get twice the better result than selling the car. In addition, you get rid of the junk that is there in your house. What’s more, you can donate car regardless of what condition it is in, a prospect that is impossible when it comes to sell a car. Now, if you are thinking about donation your car, you will find itself the easiest thing that you have ever done. Of course, the advent of internet has made the car donation even easier. So, just take a look at the steps that you need to perform if you are to donate your car. Read more:
Know About Advantages Of Car Donation
Do you have that huge piece of junk in your garage? Do you crib every time you see that old unused car occupying your precious garage space? Do not despair for we shall give you valuable information which will help you to solve your crisis. You can easily get rid of it by donating your car. Naturally, it will save a lot of space in your house and make it look better. However, if you are thinking that the benefits of car donation end here, you are wrong. Remember there are plenty of other advantages which are associated with car donation.
When you donate a car, you free yourself from the hassles associated with the useless car. You no longer have any liabilities to the car; you don't have to maintain it any more. In short, the donation will help you to relax.
Car donation can save you a lot of money as well. Often we overlook the fact that selling is an expensive means to get rid of certain things. But, when you are selling an old car, you might have to put advertisements in the newspapers and other media and that can often work out to be an expensive option. Yet, this is the only effective means to get customers if you are not getting any. On the contrary, the donation of your car does not involve even the minimum expenditure.
However, there is another way through which the car donations enhance your financial health. Like any other donations, this type of donation is also completely tax deductible. So, you don't have to pay any sales tax once you have donated the car. If you are donating it for charity, the amount is completely deductible from tax. In recent times, however, the modifications in the tax laws have brought some changes regarding the tax deduction. Still, the amount that you will save in tax is a considerable one for sure.
When you donate car, it helps both the donor and the receiver. Similarly, the donation has twice the value of the car that you have donated. First, when you donate the car you receive a tax deduction; moreover the charity receives cash because of your donation. In fact, there are plenty of ways through which your donation is utilised. If your car is in working condition, it can be donated to someone who is desperately looking for some means of transportation. However, in most of the cases, the cars are auctioned and the money received from it is used to help the poor people. read more Read more:
When you donate a car, you free yourself from the hassles associated with the useless car. You no longer have any liabilities to the car; you don't have to maintain it any more. In short, the donation will help you to relax.
Car donation can save you a lot of money as well. Often we overlook the fact that selling is an expensive means to get rid of certain things. But, when you are selling an old car, you might have to put advertisements in the newspapers and other media and that can often work out to be an expensive option. Yet, this is the only effective means to get customers if you are not getting any. On the contrary, the donation of your car does not involve even the minimum expenditure.
However, there is another way through which the car donations enhance your financial health. Like any other donations, this type of donation is also completely tax deductible. So, you don't have to pay any sales tax once you have donated the car. If you are donating it for charity, the amount is completely deductible from tax. In recent times, however, the modifications in the tax laws have brought some changes regarding the tax deduction. Still, the amount that you will save in tax is a considerable one for sure.
When you donate car, it helps both the donor and the receiver. Similarly, the donation has twice the value of the car that you have donated. First, when you donate the car you receive a tax deduction; moreover the charity receives cash because of your donation. In fact, there are plenty of ways through which your donation is utilised. If your car is in working condition, it can be donated to someone who is desperately looking for some means of transportation. However, in most of the cases, the cars are auctioned and the money received from it is used to help the poor people. read more Read more:
Know About Advantages Of Car Donation
Do you have a huge piece of junk in your garage? You can easily get rid of it by donating your car. Naturally, it will save a lot of space in your house and make it look better. However, if you are thinking that the benefit of the car donation ends here, you are of course in the wrong line. For, there are plenty of other advantages that you have not thought seriously. Yet, when you look at them now, you will be amazed how useful the donation of your car can be. When you donate a car, you are free from the hassles of the useless car. You no longer have any liabilities to the car; you don’t have to maintain it any more. In short, the donation will help you relax. Car donation can save you a lot of money as well. Often we overlook the fact that selling is an expensive means to get rid of certain things. But, when you are selling an old car, you may have to put advertisements in the newspapers and other media and that can be a very expensive means to get to the people. Yet, this is the only effective means to get customers if you are not getting any. On the contrary, the donation of your car does not involve even the minimum expenditure. However, there is another way through which the car donations enhance your financial health. Like any other donations, this type of donation is also completely tax deductible. So, you don’t have to pay any sales tax once you have donated the car. If you are donating it for charity, the amount is completely deductible from tax. In recent times, however, the modifications in the tax laws have brought some changes regarding the tax deduction. Still, the amount that will be deducted from your tax is a considerable one for sure. Read more:
Know About Advantages Of Car Donation
Want to get rid of that old car? Donating it to charity is a fine choice. A charitable car donation doesn’t mean you’re giving something away for nothing. You could also benefit from such a choice, like receiving favorable tax deductions. If the charity sells the car, you receive its selling price as a tax write off. If it uses it, you get a tax write off equal to the fair market value of the car Donating your car to charity is sure to bring rewards. Other than the tax deductions, the laws on karma will also apply. The good deeds you show will be rewarded surely.But how do you find the right charity to receive your car? First, ask if your charity is recognized by the Internal Revenue Service (IRS). This makes you eligible for tax deductions.Finding the right charity can be hard, especially in certain places where geography and unfamiliarity play a factor in the success or failure of your search. In such cases, contacting some car donation services is a good idea. From the list that these car donation services would provide, you could select the charity you think is most deserving of your carRemember, making sure your charity is recognized by the IRS for you to receive your tax deductions. There are lots of “broker” services out there that will find a charity for you free, receive a small referral fee from the charity. Make sure you inquire about these as well.One way to learn more about car donation is to keep your ears opened as you hear information on tv, the news,radio and conversations. Often you'll hear people saying what they heard and where they heard it and that willhelp you get more facts on automotive donation programs.But, knowing which car donation service to select is not easy. You should conduct a little research and not be afraid to ask questions. Questions about the process and how the vehicle will be sold should be included with an investigation. Check and see if the program is registered with the state in which it resides.We've gathered some information for you on this to save you some time since research is always a difficulttask. Yet without proper research there is no way to acquire the material you need to understand about car donatiRead more:
Know About Advantages Of Car Donation
Do you have a huge piece of junk in your garage? You can easily get rid of it by donating your car. Naturally, it will save a lot of space in your house and make it look better. However, if you are thinking that the benefit of the car donation ends here, you are of course in the wrong line. For, there are plenty of other advantages that you have not thought seriously. Yet, when you look at them now, you will be amazed how useful the donation of your car can be. When you donate a car, you are free from the hassles of the useless car. You no longer have any liabilities to the car; you don’t have to maintain it any more. In short, the donation will help you relax. Car donation can save you a lot of money as well. Often we overlook the fact that selling is an expensive means to get rid of certain things. But, when you are selling an old car, you may have to put advertisements in the newspapers and other media and that can be a very expensive means to get to the people. Yet, this is the only effective means to get customers if you are not getting any. On the contrary, the donation of your car does not involve even the minimum expenditure. However, there is another way through which the car donations enhance your financial health. Like any other donations, this type of donation is also completely tax deductible. So, you don’t have to pay any sales tax once you have donated the car. If you are donating it for charity, the amount is completely deductible from tax. In recent times, however, the modifications in the tax laws have brought some changes regarding the tax deduction. Still, the amount that will be deducted from your tax is a considerable one for sure. Read more:
How To Go About Car Donation
Donating your used car is an alternative to selling it in the market. This is especially true for unused cars that are in non-running condition. If you were to try and sell such cars in the market you would first have to conduct repair work and search for buyers which would take up quite some time.
Amongst the benefits of donating your car is the fact that you receive a tax cut. Secondly you can even donate a car that has reached the end of its life and does not work any longer. Furthermore most car donation companies will be more than willing to receive your car from your home without you having to incur any extra costs of managing delivery. In cases where donated cars are auctioned, the donor is entitled to receive a portion of the proceeds and can select the particular charity to which the remaining proceeds should go to.Read more:
Amongst the benefits of donating your car is the fact that you receive a tax cut. Secondly you can even donate a car that has reached the end of its life and does not work any longer. Furthermore most car donation companies will be more than willing to receive your car from your home without you having to incur any extra costs of managing delivery. In cases where donated cars are auctioned, the donor is entitled to receive a portion of the proceeds and can select the particular charity to which the remaining proceeds should go to.Read more:
Why Use Car Donation Services ?
Are you interested in donating your car but are unsure whether your car is eligible to be donated? It is important to know that car donation companies generally accept all kinds of cars. A used car that is in good running condition or in need of small repairs is definitely eligible or donation. On the other hand you can even donate a car that has not been in running condition for quite some time.
Many people leave their unwanted cars in garages or yards to rot year after year. They do not want to take the trouble of disposing the car and are unaware of the fact that they can actually donate their car. Not only will this help them to clear up the wasted space but it would also arrange for them a way to have their car towed without having to incur any additional costs.
It is but natural to have questions when it comes to car donation. Some of these questions pertain to the kinds of vehicles that are eligible to be donated whereas others are concerned regarding the purpose of these donations and the benefits that they can derive out of this act. The fact that many car owners do not have any idea regarding the kind of cars are eligible for donation stops many from donating their cars. The general assumption made by such people is that their car is not good enough to be donated. However the chances are that it quite likely is.Read more:
Many people leave their unwanted cars in garages or yards to rot year after year. They do not want to take the trouble of disposing the car and are unaware of the fact that they can actually donate their car. Not only will this help them to clear up the wasted space but it would also arrange for them a way to have their car towed without having to incur any additional costs.
It is but natural to have questions when it comes to car donation. Some of these questions pertain to the kinds of vehicles that are eligible to be donated whereas others are concerned regarding the purpose of these donations and the benefits that they can derive out of this act. The fact that many car owners do not have any idea regarding the kind of cars are eligible for donation stops many from donating their cars. The general assumption made by such people is that their car is not good enough to be donated. However the chances are that it quite likely is.Read more:
Vehicle Donation Facts
If you are planning to donate your vehicle to your selected charity consider these facts before you donate your vehicle. These facts help you to get a hassle free transaction with a greater benefit to your selected charitable organization. Many people wonder what to do with their vehicle which is there unused from a couple of months. This is a very common condition when you suddenly buy a new vehicle and don’t require the old one or the one which you are presently driving needs replacement. In such case donating the vehicle for the work of charity makes out to be the best thing you could do with your old vehicle. Donating your vehicle to the charity helps the charity do many important works for our community, the needy and the disabled. Read more:
How Car Donation Is Appealing
At first glance one may not be too attracted by the idea of donating their car. Actually when you look into it there are many reasons that may entice you to do so. This includes but is not limited to gaining tax benefits, participating in charity and saving bundles of time. Even if your vehicle is not worth much it will still help to raise funds for a charitable organization. The IRS is bound by law to give a tax refund on donation cars. This amount can be as high as $500. This is one of the biggest attractions that causes people to give up their unused cars for donation. Getting started with the process is extremely easy. All you have to do is fill out a car donation form where you enter some basic information regarding your vehicle from the website of a car donation company. You will also have the opportunity to choose the beneficiary charity organization from the panel charities that are part of the particular donation company’s listings. The Car donation company will then give you a receipt which can be used to get the tax rebate from the IRS. Hence car donation gives you a guaranteed rebate worth five hundred dollars or more in any case. Consider the fact that this is a complete hassle free way of getting rid of your car while earning a handsome amount and participating in charity all at the same time. You don’t have to run ads in the newspaper and have people come over to test your ride. Nor do you have to get your vehicle repaired in order to be able to sell it. Similarly if you were to participate in a trade in you would have to go through so much hassle as compared to car donation programs. The vehicle can either directly go to the charity organization. Most car donation companies however sell the vehicle and give a certain percentage of the proceedings to the charity organization that you have selected. In case the charity decides to make use of the car then you may able to receive the market value of the vehicle. However when you go through the middle men the chances are that the car will be auctioned off and you will be receiving a sizable tax break. Read more:
Car Donation That Pays Off
Most people may not know exactly how cash donation can pay them off. Of course a noble act of charity will bring spiritual joy to the donor but there are more rewards of other kinds to be reaped from car donation. The monetary rewards coupled with the timeless non-monetary benefits of participating in charity make it a truly worth while venture. Just because there are monetary benefits to be gained out of Car donations does not make it a selfish act. You may be entitled to cash and cash equivalent benefits from your car donation. Car donation is one of the most practical means of getting rid of unwanted property. Even if your vehicle is in non-running condition giving it up to a charity is far better than sending it to the dumps. By car donation your beat up old ride will be converted into cash which will be used to empower the community. At the same time your valuable garage space will be saved and you will no longer have to spend on maintenance costs in the future. The best way to get rid of your unwanted car is to contact a car donation company. This will make the entire process totally hassle free for you. Once you contact the car donation company you don’t have to waste any time or put in any effort or money. All these savings are almost as worthy as cash. Yet these are not the only benefits of car donation. You will actually be benefiting in terms of cash in the form of tax benefits through your donation. The IRS has developed a compensation deal for car donors in the form of tax write offs. This has proved to be a big time motivation for people to donate their cars which they may have otherwise sold off or traded in. It is a deliberate attempt by the government to encourage charity. The IRS allows you to make a claim of tax deduction up to the fair market value of the particular car in question. The bar is usually set at $500. However if your car sells for a high price in the market you may be able to yield tax benefits calculated of the gross selling price of the vehicle. This cash benefit may not be received in the form of cold cash but it is in fact a saving that will rid you of the liability to pay hefty taxes in the future. Read more:
Important Factors for Car Donation
Automobiles are the prevalent means of traveling across distances and the coming of vehicles have greatly revolutionized communication between distant places and it is possible today to travel across continents, over oceans and seas, from one part of the world to another only with the aid of vehicles. Cars are responsible for transportation on land and in recent times, car donation has emerged as a prevalent practice. In the United States of America , especially, car donation is a common and widespread practice. The act of car donation refers simply to the means by which unused cars in good working condition are given up by their owners to charity organizations which in their turn provide a variety of benefits. One of the most important benefits provided by these charitable donations is that they offer various tax benefits to the various car donators. Such a process has been popularly termed by critics as ‘tax shelter'. In fact it has been estimated from current statistics that in the United States itself, about 7 lakh tax payers were able to conserve about $654 million by means of tax saving through car donations.It is necessary to keep in mind that one must study all the nuances thoroughly before donating a car. In this case, it must also be mentioned that not only cars, but even heavy vehicles like trucks, boats and trawlers are also accepted for donation. Once an individual decides to donate a car, the first and foremost thing that he should do is to collect information regarding the various charitable organizations that accept such car donations. There are various websites on the internet itself which provides the names pf various similar charitable organizations which offer these facilities. Here it is significant to mention the authority of the Vehicle Donation Processing Center Inc. which is the central organization responsible for presiding over such matters related to car donation and it is kind of mediator between the donors and the charitable trusts facilitating the process of donation. The donated car is auctioned in due course and is sold to the highest bidder. Once the car donation procedures are complete, a towing company car will arrive to pick up the vehicle to be donated. It is necessary to keep in mind that the donor must keep aware of the IRS guidelines and in this case if the vehicle is sold at an amount below $500, then tax benefits are available form the estimated sale price of the car as demanded by the owner.Read more:
DONATE A CAR and GIVE HOPE TO A CHILD
DONATE A CAR & GIVE HOPE TO A CHILD Kars4kids Car Donation program will accept your used car donations. With your vehicle donation, you'll receive a receipt for an IRS tax deduction, free towing, plus a free vacation voucher!
The car donation process is simple and convenient. Just fill out our quick and easy online car donations form.
Kars for kids will provide quick hassle free pick-up when you donate a car. The average contact time for scheduling a free pickup for your car donation is 24 hours and in many instances as little as 2 business hours. There is absolutely no charge when you donate a car.
We have experienced, trained operators ready to guide you through the car donation process. Call 1.877. Kars.4.Kids, 24 hours a day, to donate a car
Car Donation Program Misleading Claims - Beware
Some car donation programs make claims that are misleading to persons wishing to make a car donation. Facts about claims concerning car donation.
Help a child when emergencies occur. Donate Your Vehicle...
• Fast Free Towing all vehicles
• Tax Deduction (or free vacation)
• All With No Paper-work Hassle!
If you wish to make a car donation please BE AWARE of the following misleading terminology or procedures:
Maximum Deduction
Full Fair Market Value
Fully Tax Deductible
Tax Credit
Offering a Free Vacation AND a Tax Deduction
Car Donation Tax Deduction
These statements give the impression that the charity can provide something special to that donor by using that charity.
They seem to say, "If you make your car donation to our charity you will receive __________," (which would be some sort of tax benefit that perhaps another charity cannot provide--This is misleading).
No charity can influence or declare how much tax benefit you will receive from a car donation.
Maximum Deduction -- Full Fair Market Value
Your car donation tax deduction is based on the Actual Fair Market Value. You do not magically receive the "maximum deduction" or the "full fair market value." There is no such thing.
And according to the New Tax Law which went into effect January 1, 2005 the fair market value of a vehicle is no longer the primary determining factor. Please visit our New Tax Law Section to get the up-to-date information on noncash charitable deductions for vehicle donations.
The IRS makes this quite clear in IRS Publication 526 and IRS Publication 561 (see our car donation IRS information page) and in the following release:
IRS AND STATE CHARITY OFFICIALS URGE CARE WHEN MAKING A CAR DONATION
Source: http://www.irs.gov/pub/irs-news/ir01-112.pdf
Here are a few quotes from that news release:
“When done correctly, donating a used car to a charity can help both the charity and the taxpayer,” said IRS Commissioner Charles Rossotti. “We want people to take a few simple steps to avoid possible problems and to make sure they get the proper tax deduction for their donation. Don’t get taken for a ride.’’
Fully Tax Deductible — Tax Credit
The statement "Fully Tax Deductible" is very misleading. The donation IS "fully tax deductible" for some people BUT NOT for everyone.
To be able to have any tax deduction the person must itemize their deductions. Less than 50 % of Americans itemize deductions.
Another quote from the above IRS Release:
"ITEMIZE IN ORDER TO BENEFIT – Many taxpayers can’t take a deduction for car donations because they don’t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2001, the standard deduction will be $4,550 for single; $7,600 for married filing jointly). Less than one-third of the nearly 128 million individual taxpayers itemized in 1999, the last year for which complete data is available."
The statement that you will receive a "Tax Credit" is FALSE. There is no such thing as a tax credit for a car donation.
Offering a Free Vacation AND a Tax Deduction
If a charity provides a commodity, for example a vacation package, in exchange for a car or vehicle donation then the tax receipt from that charity must state the fair market value of that commodity (the free vacation) and the fair market value of that commodity must be subtracted from the value of the car donation. In other words your tax deduction will be less.
For example, if your vehicle sells for $1000.00 at auction and your vacation package that you receive has a fair market value of $400.00 you can only deduct $600.00. $1000.00 for the donated car, $400.00 is for the vacation package and $600.00 would be the maximum you could deduct. ($1000.00 - $400.00 = $600.00)
We certainly do not want donors to be shocked be receiving a tax letter that states they have to subtract the fair market value of the vacation from the value of their vehicle.
For more information on this you can view this page: Car Donation Tax Deductions
We are the first charity ever to provide a vacation or other offer, but we did so to assist those individuals that cannot benefit from a tax deduction or would rather have a nice vacation. Thus to be fair to donors and to be ethical within the regulations of the Internal Revenue Service we have two different programs. These programs are totally separate. The charity donation program and the vehicle recycle program.
If you do decide to donate a vehicle to any car or vehicle donation charity that makes these claims we strongly urge you to read the fine print on their websites and to be very familiar with the actual IRS regulations that are current.
What is the True Data about a Car Donation?
As mentioned above this has changed now since the beginning of 2005. For more information on this visit this web page.
Throughout this web site we do try to provide you with all of the true data.
We urge you to take a few minutes to read the actual IRS references concerning you car donation so that you have the factual data. These references are not difficult to read and the sections of them pertaining to a noncash charitable contribution and a car donation are easily found in the Publications.
If you are not that familiar with how your taxes are prepared or filed please speak to the person that prepares your taxes and find out what a car donation may do for you as a tax benefit. Every person's tax situation is different. A tax preparer or Certified Public Accountant (CPA) should be able to assist you concerning your car donation.
You can also read our simple tax deduction overview page.
Other alerts about donating a vehicle.
To donate a car it is simple as filling out our Online Car Donation Form.
Top of Page
Help a child when emergencies occur. Donate Your Vehicle...
• Fast Free Towing all vehicles
• Tax Deduction (or free vacation)
• All With No Paper-work Hassle!
If you wish to make a car donation please BE AWARE of the following misleading terminology or procedures:
Maximum Deduction
Full Fair Market Value
Fully Tax Deductible
Tax Credit
Offering a Free Vacation AND a Tax Deduction
Car Donation Tax Deduction
These statements give the impression that the charity can provide something special to that donor by using that charity.
They seem to say, "If you make your car donation to our charity you will receive __________," (which would be some sort of tax benefit that perhaps another charity cannot provide--This is misleading).
No charity can influence or declare how much tax benefit you will receive from a car donation.
Maximum Deduction -- Full Fair Market Value
Your car donation tax deduction is based on the Actual Fair Market Value. You do not magically receive the "maximum deduction" or the "full fair market value." There is no such thing.
And according to the New Tax Law which went into effect January 1, 2005 the fair market value of a vehicle is no longer the primary determining factor. Please visit our New Tax Law Section to get the up-to-date information on noncash charitable deductions for vehicle donations.
The IRS makes this quite clear in IRS Publication 526 and IRS Publication 561 (see our car donation IRS information page) and in the following release:
IRS AND STATE CHARITY OFFICIALS URGE CARE WHEN MAKING A CAR DONATION
Source: http://www.irs.gov/pub/irs-news/ir01-112.pdf
Here are a few quotes from that news release:
“When done correctly, donating a used car to a charity can help both the charity and the taxpayer,” said IRS Commissioner Charles Rossotti. “We want people to take a few simple steps to avoid possible problems and to make sure they get the proper tax deduction for their donation. Don’t get taken for a ride.’’
Fully Tax Deductible — Tax Credit
The statement "Fully Tax Deductible" is very misleading. The donation IS "fully tax deductible" for some people BUT NOT for everyone.
To be able to have any tax deduction the person must itemize their deductions. Less than 50 % of Americans itemize deductions.
Another quote from the above IRS Release:
"ITEMIZE IN ORDER TO BENEFIT – Many taxpayers can’t take a deduction for car donations because they don’t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2001, the standard deduction will be $4,550 for single; $7,600 for married filing jointly). Less than one-third of the nearly 128 million individual taxpayers itemized in 1999, the last year for which complete data is available."
The statement that you will receive a "Tax Credit" is FALSE. There is no such thing as a tax credit for a car donation.
Offering a Free Vacation AND a Tax Deduction
If a charity provides a commodity, for example a vacation package, in exchange for a car or vehicle donation then the tax receipt from that charity must state the fair market value of that commodity (the free vacation) and the fair market value of that commodity must be subtracted from the value of the car donation. In other words your tax deduction will be less.
For example, if your vehicle sells for $1000.00 at auction and your vacation package that you receive has a fair market value of $400.00 you can only deduct $600.00. $1000.00 for the donated car, $400.00 is for the vacation package and $600.00 would be the maximum you could deduct. ($1000.00 - $400.00 = $600.00)
We certainly do not want donors to be shocked be receiving a tax letter that states they have to subtract the fair market value of the vacation from the value of their vehicle.
For more information on this you can view this page: Car Donation Tax Deductions
We are the first charity ever to provide a vacation or other offer, but we did so to assist those individuals that cannot benefit from a tax deduction or would rather have a nice vacation. Thus to be fair to donors and to be ethical within the regulations of the Internal Revenue Service we have two different programs. These programs are totally separate. The charity donation program and the vehicle recycle program.
If you do decide to donate a vehicle to any car or vehicle donation charity that makes these claims we strongly urge you to read the fine print on their websites and to be very familiar with the actual IRS regulations that are current.
What is the True Data about a Car Donation?
As mentioned above this has changed now since the beginning of 2005. For more information on this visit this web page.
Throughout this web site we do try to provide you with all of the true data.
We urge you to take a few minutes to read the actual IRS references concerning you car donation so that you have the factual data. These references are not difficult to read and the sections of them pertaining to a noncash charitable contribution and a car donation are easily found in the Publications.
If you are not that familiar with how your taxes are prepared or filed please speak to the person that prepares your taxes and find out what a car donation may do for you as a tax benefit. Every person's tax situation is different. A tax preparer or Certified Public Accountant (CPA) should be able to assist you concerning your car donation.
You can also read our simple tax deduction overview page.
Other alerts about donating a vehicle.
To donate a car it is simple as filling out our Online Car Donation Form.
Top of Page
Automobiles and Car Donation
In the primitive age, in the absence of automobiles, domestic animals were the only means by which it was possible for one to travel across distances. Cars were a much later invention and with the coming of automobiles, the whole idea of traversing form one end of the country to other was revolutionized greatly. In the contemporary world, possession of an automobile is a basic necessity and having a personal car is of great help in times of emergency when getting hold of a public vehicle becomes difficult. It has been noticed that at present, automobile manufacturers usually present new car designs quite frequently and therefore many consumers are seen to dump their previous vehicle and opt for a latest design. Moreover, there can be various other reasons because of which can owner may decide to give up his presently owned vehicle in favor of something new. Under such circumstances car donation seems to be a very lucrative option for such car owners. The process of car donation refers to the means by which it is possible to donate such vehicles which will not be used any more by the owner and give them up to charity organizations. The act of car donation is extremely popular in the United States of America because in this country car donation also ensures certain tax benefits to the car owners thus making it an extremely lucrative option. These donated vehicles are auctioned by the charity organizations and the tax benefits depend upon the sale price of the car. In fact it is also noted that for car values being less than $500, it is possible to gain tax benefits upon the estimated sale price of the car that is designated by the car owner, irrespective of the fact that whether the car is actually sold at a much lower price in the auction conducted by the charities. Such a process is referred to by many critics as ‘tax shelter'. Statistics have revealed that in the United States , more than 7 lakh tax payers were able to save about $654 million by means of such car donation.Read more:
car donation
Look around the yard, do you have an old car you want to or should get rid of? Is the car just taking up precious space and slowly deteriorating from lack of maintenance and proper care because you don't need it? Then for you a charitable car donation may be worth more than using the car as a trade-in or in any other way. If you decide to donate a car and the car donation is accepted, the charity arranges for and takes care of any towing expenses and provides you with the necessary documents for your tax return.Read more:
Car Donation Programs and Tax Deductions
Many of us look at taxes as burdens imposed on our citizenship. Life is difficult enough, many claim, and taxes make life even more of a hassle. Lots of people may go to the extent of wishing taxes away. Taxes are considered a burden to virtually everyone.But a closer look says that taxes lay the groundwork for the social services that are provided in this country. Over and over again, it has been said that taxes support the government. Taxes provide our government with the money needed to run social security programs sorely needed. Through the taxes we pay, infrastructures are built. Every taxing season, social services are funded by the taxes asked from us. National defense is also supplied through tax money.The government is not an authoritarian entity that doesn’t take care of its citizens. Although taxes are pesky, it offers all of the social services needed to run this country to the fullest. To ease the burden of tax obligations, the government gives allowable tax deductions for qualified citizens. These tax write offs are dependent on certain conditions which give a feeling of humanity to their nature.The government's car donation programs offer some of these tax deductions. By donating a car you don't want to any of the car donation programs specifically established for charity, some significant tax deductions can be had.For instance, if your charity decides to use the car for some real charity purposes as defined by law, the car donation programs the government has built would allow you a tax deduction equal to the fair market value of the car if it’s kept or the selling price if it’s sold. Indeed, these programs are great ways to show that the government can provide for its people. In many ways, taxes do more good for us than harm.There are so many websites, often it's hard to choose which to study for Car Donation facts but we find that a variety of sources work best such as the web, speaking to friends and looking in magazines or at a library. If you need current info on Car Donation then you've come to the right spot. You'll find the most recent data on this and you can relax and dig into the material. Read more:
Car Donation in Tennessee
Although Tennessee is known for its popular musicians, it is also the home of many charities serving a variety of socio-cultural causes. Indeed, this southern state I very good at providing southern comfort. Good old’ TN has a whole lot of love!When it comes to charity work, Tennessee residents have a lot of options which let them participate the way they want to. Donating old cars to charity is one popular choice. Tennessee's beloved citizens have many charities available in which to choose from.Among the institutions that can use your car donation in Tennessee is the Glaucoma Research Foundation. Glaucoma is an ailment that causes lots of liquid buildup in the eyes, which can lead to blindness. The Glaucoma Research conducts research that helps find cures for this disease, and the old vehicles that will be donated to it can be used to fund this outstanding process.The Diabetic Youth Foundation is another TN organization you can donate your car to. Diabetes is a popular disease that attacks the body's ability to metabolize sugar, which leads to health effects that may even turn fatal The Diabetes Youth Foundation aims to provide support for young ones that have the disease to pave the way for a better future. Visit the Diabetes Youth Foundation at www.dyf.org .There are more charities you could try looking at of course, and each and every one of them will appreciate the help you give them. In return for your generosity, your car donation to these institutions would reward you with tax write-offs next April 15th. Car donations touch the lives of so many people in countless ways. Car donation is fast and easy and an amazing way to make a difference. While we do give some charity cars away to people in need, the majority of the car donations we receive are sold. Not all charities have the means to run their own car donation program. Just know that you can give to the charity of your choice through our nationwide car donations program with a generous vehicle donation. The entire net proceeds from your car donation will go directly to the charity of your choice. Your charitable car donation can make an amazing difference to someone who needs food, shelter, or medical care.Read more:
Guide To Donating Your Car
At Charity Navigator, our primary purpose is helping America's donors make informed giving decisions when they part with their hard-earned dollars by writing a check to charity. In the past few years, however, more and more donors are attempting to help themselves, and help others, by donating their used automobiles to charity. This has become a massive business. In the year 2000, nearly ¾'s of a million people took a car donation deduction on their federal tax returns, thusly lowering their taxes by over $650 million.
As America's car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk. By following these 10 Charity Navigator Tips For Charitable Auto Donations, you can minimize that risk, and maximize the amount that actually gets to charity.
1. Find a Charity That Directly Accepts Car DonationsIf at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car's value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It's possible that the charities you already support have a car-donation program that you don't know about. Check with them first.
2. If Your Charity Doesn't Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You RespectRemember that you're still making a charitable donation, and don't simply give your automobile away to any charity, just because they're a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.
3. If It Runs, Drive the Car to the CharityWorthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization's programs. If you can get the car to them yourself, do it.
4. If You Have to Use a Intermediary Agency, Research the Percentage that Gets to CharityThe IRS does not require the car donation agencies to contribute a set amount of the auto's proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don't want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.
5. Make Sure Your Intended Organization is a 501 (c) (3)While many organizations can claim non-profit status, donations to 501 (c) (4) organizations are generally not tax-deductible. These are political organizations with permission to lobby our government; like Disabled American Veterans or the National Rifle Association. Make sure your intended recipient has 501 (c) (3) public charity status.
6. Transfer the Car Correctly to the CharitySome charities will ask you to leave the assignment of ownership space on the charity donation papers blank, so they don't have to re-title the auto. If your charity asks this of you, find another charity. If you don't formally sign your car over to the designated nonprofit, you will be held responsible for any parking tickets that are subsequently incurred, or liable if it's used in a crime. Remember, the charity you give the car to will probably not use your car to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and doesn't bother to register that car, it's still yours in the eyes of the law.
7. Value Your Car CorrectlyDue to the proliferation of car donations, the IRS became increasingly concerned about how taxpayers valued the vehicles they donated to charity. Over the last few years, the agency stepped up their audits in this area and began to advocate for changes to the laws that govern such deductions. With the passage of the American Jobs Creation Act of 2004, those changes have come. Starting with your 2005 tax return, you will no longer be able to deduct the published fair market value of vehicles worth more than $500. Under the new rules, your deduction will be determined once your car is sold and the charity sends you a receipt indicating the exact amount your car garnered at auction.8. Complete Your PaperworkIf your car is worth more than $500, you must complete IRS Form 8283 and attach it to your yearly taxes.
9. Use Fair Market Value (FMV) for the CarThere are several exceptions which allow you to use the Kelley Blue Book or a NADA guide, but you must use the FMV, not simply the highest value listed for the year and make of your car. Use the FMV when:
instead of selling the vehicle, the charity keeps and uses it,
the charity makes improvements to the car before selling it,
your car is sold at a discounted price to a person with a low income,
or if the car is worth less than $500.
And remember to always get a receipt when you donate the car. Again, the IRS is watching this area very closely.
10. Take the Time to Get It RightIt is true that the biggest winner in the car donation game is usually the donor, and not the charity recipient. But if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, we can all emerge victorious.
As America's car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk. By following these 10 Charity Navigator Tips For Charitable Auto Donations, you can minimize that risk, and maximize the amount that actually gets to charity.
1. Find a Charity That Directly Accepts Car DonationsIf at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car's value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It's possible that the charities you already support have a car-donation program that you don't know about. Check with them first.
2. If Your Charity Doesn't Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You RespectRemember that you're still making a charitable donation, and don't simply give your automobile away to any charity, just because they're a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.
3. If It Runs, Drive the Car to the CharityWorthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization's programs. If you can get the car to them yourself, do it.
4. If You Have to Use a Intermediary Agency, Research the Percentage that Gets to CharityThe IRS does not require the car donation agencies to contribute a set amount of the auto's proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don't want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.
5. Make Sure Your Intended Organization is a 501 (c) (3)While many organizations can claim non-profit status, donations to 501 (c) (4) organizations are generally not tax-deductible. These are political organizations with permission to lobby our government; like Disabled American Veterans or the National Rifle Association. Make sure your intended recipient has 501 (c) (3) public charity status.
6. Transfer the Car Correctly to the CharitySome charities will ask you to leave the assignment of ownership space on the charity donation papers blank, so they don't have to re-title the auto. If your charity asks this of you, find another charity. If you don't formally sign your car over to the designated nonprofit, you will be held responsible for any parking tickets that are subsequently incurred, or liable if it's used in a crime. Remember, the charity you give the car to will probably not use your car to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and doesn't bother to register that car, it's still yours in the eyes of the law.
7. Value Your Car CorrectlyDue to the proliferation of car donations, the IRS became increasingly concerned about how taxpayers valued the vehicles they donated to charity. Over the last few years, the agency stepped up their audits in this area and began to advocate for changes to the laws that govern such deductions. With the passage of the American Jobs Creation Act of 2004, those changes have come. Starting with your 2005 tax return, you will no longer be able to deduct the published fair market value of vehicles worth more than $500. Under the new rules, your deduction will be determined once your car is sold and the charity sends you a receipt indicating the exact amount your car garnered at auction.8. Complete Your PaperworkIf your car is worth more than $500, you must complete IRS Form 8283 and attach it to your yearly taxes.
9. Use Fair Market Value (FMV) for the CarThere are several exceptions which allow you to use the Kelley Blue Book or a NADA guide, but you must use the FMV, not simply the highest value listed for the year and make of your car. Use the FMV when:
instead of selling the vehicle, the charity keeps and uses it,
the charity makes improvements to the car before selling it,
your car is sold at a discounted price to a person with a low income,
or if the car is worth less than $500.
And remember to always get a receipt when you donate the car. Again, the IRS is watching this area very closely.
10. Take the Time to Get It RightIt is true that the biggest winner in the car donation game is usually the donor, and not the charity recipient. But if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, we can all emerge victorious.
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