Docstoc

Car Donation Tax Deduction Tips

Document Sample
Car Donation Tax Deduction Tips Powered By Docstoc
					Car Donation Tax Deduction Tips
By Ljiljana Anicic

When you decide to donate a car to charity, you should be aware that you could apply for car donation tax deduction. Knowing that is your first step. If you have a charity that you support than your search is over. If you don't and you need to look for one, choose charities that allow you to donate a car and will offer you tax deduction, because in that way you will know that they are registered with the federal government and that they are eligible to be the receiver of tax-deductible contributions. When having a conversation with charity it is good to tell them specifications about the car that you intend to donate. If car that you donate don't currently run, they need to know that, so that they can send a tow truck and other equipment needed to pick up the donation. Charitable organization will send someone to pick up the car that you want to donate and to give you receipt for your tax donation. What you could do for better car donation tax deduction is to be aware that people from charity will take a good look at car that you are donating and validate it through different factors and maybe just cleaning them and tiding them will get you better results. Some charities don't grade the car but just give you a flat car donation tax deduction. From January 1, 2005 new tax law says that donor's used car donation tax deduction is limited to the full price that charitable organization receive for the sale of donor's vehicle. That means that the selling price of the donated car is what donor can deduct in tax return. That applies only if car that you are donating sells for more than $500. For the selling price of and under $500 for your donation donor can deduct what he determines as the fair market value. What is very important, at the end, is to save all your donation receipts as a proof of donation and of the amount of money that you will get back in your tax return. Car donation tax deduction is limited to the full price that charitable organizations receive for the sale of donor's vehicle.


				
DOCUMENT INFO
Shared By:
Stats:
views:94
posted:1/14/2010
language:English
pages:1
Description: When you decide to donate a car to charity, you should be aware that you could apply for car donation tax deduction. Knowing that is your first step. If you have a charity that you support than your search is over. If you don't and you need to look for one, choose charities that allow you to donate a car and will offer you tax deduction, because in that way you will know that they are registered with the federal government and that they are eligible to be the receiver of tax-deductible contributions.