10 Best Charity Car Donation Tax Deduction Tips

These are some of the most important and bestwhenever that occurs. They must also certify to the
charity car donation tips you'll need to considerdonor how it intends to use or upgrade/repair the car
before donating your car, truck, van or other anyand state in writing that they will not sell the vehicle
other vehicle. You can donate cars, trucks, boats,or transfer it to any other party.
airplanes, ATV's, even old motor homes and many6. If your car is valued at $5,000 or more you'll need
other types of vehicles and get a good taxto get an independent appraisal and complete the
deduction.appropriate part of the Internal Revenue Service
1. First it's important to know that the laws wereform.
changed in 2004 limiting the donor's used car donation7. For cars or vehicles that are worth under $5,000,
tax deduction to the amount the selected charityuse either Kelley Blue Book or a guide from NADA to
ends up selling the car for.determine the current market value. Use the right
2. You want to find out if the charity is rightly eligibleand correct figure for the date, mileage, and car's
to be the receiver of tax deductible contributions socondition. Don't just pick the highest figure for your
make sure that you ask for the organization'svehicle year and model and not note other important
Internal Revenue Service's "Letter of Determination."factors. The IRS will look down on this.
This will verify their status.8. Take several close-up pictures of the vehicle inside
3. Make sure to get a good well-documented receiptand out.
from the charitable organization for your vehicle or9. Save all your receipts for any upgrades including
car donation.any new tires to document and verify the car or
4. In order not to send up any red flags on yourvehicle's value.
income tax return know that the IRS looks carefully10. It's important to know that it's not the charity or
at non-cash donations so make sure to clearlycharitable organization, who is obligated to come up
document the correct car or vehicle value and keepwith the correct value and you'll have to pay any
accurate detailed records.penalties if the IRS audits or challenges you and finds
5. If your used vehicle is worth $500 or even more,your figures are unfounded.
then complete the newest Internal Revenue ServiceFinally be aware that some charities use a donated
tax deduction form, the number may change formcar or vehicle for transportation or for hauling and
time to time, fill out the proper portion and attach itthey benefit directly from the donation. But in most
to your income tax return. You must also include acases the vehicles or cars are sold by the charity,
written acknowledgement from the charity.dealer or car donation center to help raise funds for
If your charitable organization sells your donated car,the charitable organization. When this happens, if it's
then they must provide you with the sales pricethe dealer, the charity may get only a flat fee and
within 30 days with a certification the automobile,may be as little as $50 for your used car. So check
truck, van or other vehicle was sold at betweenwith the charity on how they intend to handle the
parties not related to each other. The donor's taxdonation if this is important to you.
deductions must be limited to the total the charityThese are some of the best charity car donation tips
sold the car or vehicle for. If they don't sell the car,you can put to use immediately if you're considering
they must provide you, the donor, with a receiptdonating a car, truck or other vehicle to a charitable
within approximately thirty days of the sale,car donation program.