10 Best Charity Car Donation Tax Deduction Tips

These are some of the most important and bestcertify to the donor how it intends to use or upgrade
charity car donation tips you'll need to consider beforerepair the car and state in writing that they will not sell
donating your car, truck, van or other any other vehicle.the vehicle or transfer it to any other party.
You can donate cars, trucks, boats, airplanes, ATV's,6. If your car is valued at $5,000 or more you'll need to
even old motor homes and many other types ofget an independent appraisal and complete the
vehicles and get a good tax deduction.appropriate part of the Internal Revenue Service form.
1. First it's important to know that the laws were7. For cars or vehicles that are worth under $5,000,
changed in 2004 limiting the donor's used car donationuse either Kelley Blue Book or a guide from NADA to
tax deduction to the amount the selected charity endsdetermine the current market value. Use the right and
up selling the car for.correct figure for the date, mileage, and car's condition.
2. You want to find out if the charity is rightly eligible toDon't just pick the highest figure for your vehicle year
be the receiver of tax deductible contributions soand model and not note other important factors. The
make sure that you ask for the organization's InternalIRS will look down on this.
Revenue Service's "Letter of Determination." This will8. Take several close-up pictures of the vehicle inside
verify their status.and out.
3. Make sure to get a good well-documented receipt9. Save all your receipts for any upgrades including
from the charitable organization for your vehicle or carany new tires to document and verify the car or
donation.vehicle's value.
4. In order not to send up any red flags on your10. It's important to know that it's not the charity or
income tax return know that the IRS looks carefully atcharitable organization, who is obligated to come up
non-cash donations so make sure to clearly documentwith the correct value and you'll have to pay any
the correct car or vehicle value and keep accuratepenalties if the IRS audits or challenges you and finds
detailed records.your figures are unfounded.
5. If your used vehicle is worth $500 or even more,Finally be aware that some charities use a donated
then complete the newest Internal Revenue Servicecar or vehicle for transportation or for hauling and they
tax deduction form, the number may change formbenefit directly from the donation. But in most cases
time to time, fill out the proper portion and attach it tothe vehicles or cars are sold by the charity, dealer or
your income tax return. You must also include acar donation center to help raise funds for the
written acknowledgement from the charity.charitable organization. When this happens, if it's the
If your charitable organization sells your donated car,dealer, the charity may get only a flat fee and may be
then they must provide you with the sales price withinas little as $50 for your used car. So check with the
30 days with a certification the automobile, truck, vancharity on how they intend to handle the donation if this
or other vehicle was sold at between parties notis important to you.
related to each other. The donor's tax deductions mustThese are some of the best charity car donation tips
be limited to the total the charity sold the car or vehicleyou can put to use immediately if you're considering
for. If they don't sell the car, they must provide you, thedonating a car, truck or other vehicle to a charitable
donor, with a receipt within approximately thirty dayscar donation program.
of the sale, whenever that occurs. They must also