Car Donation: Your Tax Questions Answered

1.How much can I deduct?

When you donate a car via Car Donation Wizard,  the IRS allows you to claim a tax deduction of:

a) The value of your vehicle up to $500. It is up to the donor to determine the fair market value.

b)The amount we sell your vehicle for – if it is more than $500.

 

2. Is that rule the same, even if the charity decides to use the vehicle or give it to someone in need? 

The amount you are able to deduct can also depend on what the charity does with the donated vehicle.

a) Charity sells the vehicle: Your deduction is limited to the gross proceeds the charity receives from selling the vehicle. If that amount is less than $500, you may be able to deduct the fair market value up to $500.

b) Charity uses the vehicle: Your deduction is limited to the fair market value of the vehicle.

Here are some examples from the IRS website that will clarify:

Example 1: On April 1, you donated your car to the local
food bank. When you donated the car, you had determined
that the fair market value was $4,300. On November 10,
the charity sold your car (to someone other than a needy
individual), without any significant intervening use or material
improvement, and received gross proceeds of $3,700. Your
deduction may not exceed $3,700.

Example 2: The charity certifies in an acknowledgment that
it will make significant intervening use of the vehicle by using
it daily for at least a year to deliver food to needy individuals.
Your deduction may not exceed the fair market value of your
car, $4,300.

Example 3: The facts are the same as in Example 1 except
the charity only received gross proceeds of $400 from the
sale. Your deduction may not exceed $500.

Need more answers? The IRS publishes A Donor’s guide to Vehicle Donation.

 

 

 

Unique Car Donation: USA made 1940 Cadillac Series 62

It is only February and we have our second unique car donation for 2014. This month a 1940 Cadillac Series 62 was donated to the ASPCA.This sleek looking automobile was manufactured by General Motors and assembled in the car capital of the world, Detroit, Michigan. The fisher-bodied Cadillac Series 62 replaced the earlier 61 model and features a predominant grill, which later became synonymous with the Cadillac brand.Series 62’s are some of the most well known vehicles that Cadillac has ever produced, and they tend to stand out in the minds of many Cadillac fans. As you can see in the pictures below, the Series 62 features a low sleek “torpedo” style C-body with chrome window reveals, slant at the windshield and a curved rear window.

This timeless beauty remained in production through 1964 being renamed the Series 6200 and subsequently the Cadillac Calais.

Initial offerings were comprised of a coupe, touring sedan, convertible coupe, and convertible sedan on a 129-inch wheelbase. Prices ranged from $1,685 to $2,195. As in later years, the 62 garnered the most sales by far of any 1940 Cadillac line. The division’s 1940 V-8 retained monoblock construction (unitized block and crankcase), three main bearings with counterweights, and two-barrel downdraft carb. Though heavy, it was reliable and exceptionally smooth.

The Series 62 is still a popular feature in pop culture today.A pink 1959 Cadillac Series 62 convertible as well as a 1963 model of the same car were both featured in the 1980 cult film “Rock ‘n’ Roll High School” being mentioned as the “ Ramone mobile” by a fan in the film. Most recently the 1963 model coupe convertible was mentioned in Grammy award winners,  Macklemore and Ryan Lewis’s song “white walls”This car needs some love and attention in order to bring it back to its glory days, but it is a whole complete vehicle and once finished it will definitely not go unnoticed.This car was donated to help support ASPCA’s mission “to provide effective means for the prevention of cruelty to animals throughout theUnited States”.Whoever buys this Cadillac 62 will be supporting a remarkable charity while also bringing this unique car back to its glory days.

Please take a look and comment to share useful context about the 1940 Cadillac Series 62.

 

 

Unique Car Donation: Tatra 600, Tatraplan donated to the American Cancer Society

Every few months we have an interesting piece come in through our donation programs at cardonationwizard.  This month’s most interesting donated auto is a 1950 Tatra 600 donated through the American Cancer Society Cars for a Cure Vehicle Donation Program.  The Tatra 600 was named the Tatraplan and was a luxury automobile produced inCzechoslovakia, behind the Iron Curtain.  The 600 has a very interesting history to go with the outstanding craftsmanship and amazing art deco design.  This was one of the last luxury automobiles produced in the communistEastern Europe.

After World War II, Tatra returned to its pre-war business of building passenger cars in addition to commercial (and military) vehicles. Tatra manufacturing was nationalized in 1946 two years before the Communist takeover in 1948. The Tatra 600 Tatraplan was designed in 1946-47 to celebrate nationalism and developing communist pride but also celebrated technology and had a distinct éroplan inspiration (‘éroplan’ means airplane in colloquial Czech).

The 600 went into mass production in 1948 and was discontinued in1952.[2]

The Tatraplan has a six-seater sleek saloon body and was powered by an air-cooled flat-4-cylinder 1,952 cc rear-mounted engine (check out the fan design prominently featured on the rear motor).  Only 6,342 were made and very few found there way to the United States.

Tatra and VW have a very interesting history. Tatra sued the Nazi pride designed VW for stealing design elements of their cars.  Tatra Won!

Again, this is a donated car.  The donor had the vehicle in storage for many years before donating it to the American Cancer Society.  It’s a very, very cool donated vehicle.  The car is not in running condition and is in need of a complete rebuild but it is incredibly rare and in high demand.

The proceeds from the sale of this rare beauty will go to support the important work and mission of the American Cancer Society.  Over 95% of the gross sale of the vehicle will go to support cancer prevention and research.  No other vehicle donation program would return nearly that amount to the charity.  That’s why the programs at Car Donation Wizard are the very best.

Please take a look and comment if you can provide any information or useful context about Tatra and the Tatraplan.

If you are interested in purchasing the Tatra 600 you can do so through this link :

http://www.copart.com/c2/homeSearch.html?_eventId=getLot&execution=e4s1&lotId=12693864&returnPage=SEARCH_RESULTS

We have extended the auction date for the Tatra 600, you can now bid on this item until Friday 2/7/14!! 

Thanks for taking a look.

6 Tax Tips for Donating a Car to Charity

With tax preparations for 2013 underway, Car Donation Wizard wants donors to know that donating your car to charity not only helps the organization fund worthwhile research and activities, but you also may be eligible to claim a tax deduction for your charitable contribution. Here are some car donation tax tips:

1) Make sure the charity is eligible to receive tax deductible contributions. The most common types of qualified organizations are section 501(c)(3) organizations, such as charitable, educational, or religious organizations. Visit IRS.gov to search for registered charities.

Car Donation Wizard only works with esteemed, 501(c)(3) non-profit organizations.

2) Be sure that you get a receipt from the charity for your car donation. You must obtain a written acknowledgment from the charity if the total deduction you are claiming for a donated car is $250 or more.

Car Donation Wizard mails a tax receipt for your records following the sale of your vehicle.

3) The IRS will only allow a deduction for the fair market value of the car.

This can be found on the tax receipt mailed to you for your donation.

4) If the car is worth more than $500, the donor must complete Section A of IRS Form 8283 and attach it to their tax return.

5) If the car is worth $5,000 or more, an independent appraisal is necessary. The donor must also fill out Section B oIRS Form 8283. Take pictures of the car and save receipts for new tires or other upgrades to verify its value.

6) Always consult your tax adviser or the IRS for more information about how you can claim charitable deductions. The IRS can answer your tax questions and can provide tax forms, publications, and other reading materials for further assistance. IRS materials are accessible through the Internet at www.irs.gov, through telephone ordering at (800) 829-3676, and at IRS walk-in offices in many areas across the country.

 

Spotlight on our Charity Partner: North Shore Animal League America

The dreary days of winter make it tough to keep our New Year resolutions and see a spike of Seasonal Affective Disorder in Humans but it’s also an especially tough time on pets.  This time of year sees an influx of animals to shelters. Unwanted or badly treated dogs, cats, puppies, and kittens are all looking for their ‘forever homes’. Here at Car Donation Wizard we want to highlight some facts about our charity partner, North Shore Animal League America, and let you know the impact that your car donation to animals can have.

  1. NSALA was founded in 1944 by a small group of animal lovers, intent on finding homes for abandoned pets that would otherwise be destroyed.
  2. NSALA is the world’s largest no-kill animal rescue and adoption organization.
  3. Over the past decade NSALA has saved an average of 20,000 dogs, cats, puppies, and kittens each year – and 1,000,000 lives saved to date
  4. NSALA receives no government funding and with an average cost of $1,250 to rescue, nurture, and ready a pet for adoption- car donations from generous supporters like you, are critical to continuing their mission – saving more animals lives.
  5. Car Donation wizard gives back over 80% of proceeds from car sales to our charity partners. Funds from the NSALA car donation program support all the hands-on work which includes the shelters, ongoing rescue efforts, lifesaving Mobile Adoption Units, and their Pet Health Center.
  6. Today, NSALA continues to make innovations that save more pets lives, support shelter and rescue groups, and add awareness to the plight of shelter animals everywhere.

By generously donating your vehicle today, you can help ensure that NSALA can succeed in their vision to “Create a world where all companion animals find compassionate, permanent homes and to end animal cruelty and euthanasia.”

Check out Car Donation Wizard today, and see how one simple act of kindness can make a world of difference.