Apart from the satisfaction of giving out your car to charity, there are other benefits you will enjoy. Yes, have you thought of the fact that with donation you are going to have an IRS tax deduction? This is true and you really can save money from taxation when you donate that car to a charity of your choice.
Now, you may want to know how this works. Well, read the paragraphs below.
- When you decide to donate your used car or that vehicle that you no longer use, shopping for the right charity becomes the first step to take. There are hundreds of charities out there and from these you can select and make decisions to give out your car. By doing this, you now will relish the thought having put a smile on face of those needing help.
- Not all donated cars are used by the charities, hence the charity can decide to use the car or sell it, depending on its need. If the car you donated is sold by the charity, you are to be issued with a certification stating the value of the sale to unrelated parties. With the copy of this certification you can file along your tax return to the Inland Revenue Service (IRS) for tax deduction.
- Getting tax deduction from a Car Donation to Charity is may also involve other considerations. There are legal provisions for the vehicles having valuation more than $500 and $5000. Also, the IRS would need to copies of the filled sections of the IRS Form 8283 (sections A for cars worth more than $500 and Section B for car Worth more than $5000).
- More so, the use of the Hearst Black Book, the Kelley Blue Book, and the guide of the National Auto Dealers Association (NADA) may be required to determine the worth of Vehicle that is below $5000.
So, when you make donation of car to charity you can get tax relief on that vehicle if you obtain the necessary documentation from the charity. Find out how what they intend to do with the donation. Get a tax receipt from them and file such along with your tax clearance so you can get tax reduction from the IRS.
Finally, you can now take advantage of the various charities and donate your care. The information above has guided you on how to take advantage of car donation to charity and enjoy tax relief.