- When donating your car to a charity, it is important to make sure that particular organization that you are donating to is eligible for a tax deduction. Religious and governmental institutions all qualify. To find out what other organization qualify as well, IRS Publication 78 has a list of all eligible charities. For 2008, you are required to file a 1040 tax form and itemize deductions. When donating your car, you need to document the donation and be honest about how much it is worth according to its fair market value. IRS Publication 526 itemizes a list of what you need in order to receive your tax deduction.
- After you pick what charity you would like to donate your car to, you can usually expect it to be off your hands in no time at all. Most charities offer services that come to your residence (or wherever the car is being held) and will pick it up for you.
- By donating a car, you are giving the gift of mobility and efficiency to those that really need it. Whether it is a ride to the park from a Big Brother Big Sister volunteer or a way for a child to get to practice for a chance at winning the Special Olympics, your contribution matters. This act of generosity gives back in many ways.
- When donating your car, check the background of the organization you choose thoroughly and only pick one with a proven track record. It needs to be officially qualified to give tax exemptions and able to provide all documentation in a sufficient amount of time. Always keep a paper trail and know the value of your automobile prior to donation.
- Even if your car is no longer running, you can still donate it. Many charities such as Car Angel will pick up the broken-down vehicle and tow it (free of charge). However, for your taxes, under the American Jobs Creation Act of 2004, you can only deduct the amount your car sells for or a minimum of $500.00.
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