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 of IRS 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.