Donating a car to charity | Car donation tax deduction

Complete and clear info about how to donate your car and how to file your IRS forms to enjoy your tax deduction after you donated your car.

Donating your car to charity could offer you two distinct advantages:

1. first and foremost it’s a good deed done and secondly
    
2. you can claim for tax deduction.

However, before you jump up and down with joy, there are certain issues that you need to know before you donate your car to charity.

Car donation requirements to get tax deduction

First and foremost, you must ascertain that the charity you have chosen is a qualified organization such as educational, charitable or religious bodies. You can check this out at the IRS website at www.irs.gov/eo .

You have to also ensure that you qualify for a tax deduction for donating a car. Your deduction must be itemized on your Schedule A of Form 1040 (tax return form) and it must not exceed 50% of your adjusted gross income.

In addition, you have to note that the maximum amount allowed for deduction for your car donation on your tax return is the fair market value of your donated car.

You must also ensure that you keep proper records and make the necessary filing to substantiate your charitable car donation.

Filing your tax deduction for car donation

Depending on the money you received for donating your car, you have to file one of the following:

If the total car donation deduction is more than $250 or more, you must get a written acknowledgement from the charity. You must obtain this before the earlier of:

• the date you send in your return for the year you make the contribution or
   
• the due date including any extension for filing your return.

If the tax deduction that you are claiming for your donated car exceeds $5000 you must get a written appraisal from a qualified appraisal. Section B of Form 8283 must be completed and to include is the signature of an authorized official of the charity, and this should be attached to your return.

Checklist for your car donation tax deduction

For all claims for tax reduction for automobile donations, and regardless of the amount, the following record-keeping and filing requirements are needed :

1. name / address of charity
    
2. date of donation
    
3. place where you donated your car
    
4. description of car

Additional filings according to the value of your donated car:

• If you claim a tax deduction of more than $250, then you will also need contemporaneous written acknowledgement from the charity.
   
• For deductions more than $500 but less than $5000, you will require to fill in Form 8283 Section A.
   
• For deductions more than $5000, you need to fill in Form 8283 Section B and attach a written appraisal on the car value.

If need to, you can also seek the assistance of the IRS to answer any of your car donation tax deduction queries and all relevant forms (if so needed) including publications and reading materials to guide you along.

Technorati Tags: auto donation tax deduction, automobile tax deduction, car donation tax deduction, car donations, car donations to charity, charitable tax deduction, charity tax deduction, donate a car, donate a car to charity, donate car tax deduction, donate car to charity, donate my car, donate used car, Donate your car, donating a car, donating a car to charity, donating car to charity, donating cars, donating cars to charity, donation tax deduction, irs forms, tax deduction, tax return preparation, vehicle tax deduction

• Where to donate a car Clear info about:   where to donate your car,   how to get a car donation tax reduction and   making sure you donate your car to the charity cause you prefer.   Where can I donate my car   Have you ever thought of donating your car for......
• Donating a car to charity Feel great after donating a car to charity: get rid of your car, make a person or child happy and get a tax deduction!   How to donate to charity without giving money?   If you have ever thought of doing something for charity and do not have the......
• How to donate a car Enjoy a tax deduction when you follow these simple steps explaining all you need to know about how to donate a car.   Do you have a car that is gathering dust in your garage and you would like to get rid of it and make use of the......

• How to Donate Appreciated Stock It’s well understood that when you donate $100 to an eligible charity, you get a $100 tax deduction if you itemize your deductions. What happens when you donate $100 in stock to an eligible charity? The exact same thing. You get a $100 deduction to your taxes if you itemize......
• Don't Miss These Overlooked Tax Deductions. In doing some research for preparing all my tax documents for my brother the accountant, I came across an article at Kiplingers that outlined some of the most overlooked tax deductions. While some of them I already knew about, some I did not - so I figured I would mention......
• Year End Income Tax Guide (Part 2) This is the second part of Mr. ToughMoney Love's year end income tax guide that I have put together to help me (and I hope you) do some last minute strategizing and planning for the 2008 and 2009 tax years.  Most of these tips reflect matters that are new or changed in......
• Tips and Considerations to Buy a Hybrid Car Many people find themselves considering whether or not they should buy a hybrid car. With the rising costs associated with gas and maintenance of regular gas-driven vehicles, it is becoming less and less affordable for people to own vehicles in this day and age. As a result of the increases......
• Income Taxes It is US federal law that income tax has to be paid to the IRS. Knowing the basics, and understanding your own personal situation will help in reducing the risk of overpaying on your taxes. There are ways to reduce what you have to pay, making use of the current......