Donating to a Car Charity
Chris Roberts
If you've thought about donating your auto to a car charity, don't hesitate. Donating is easy. Along with the good feeling that comes from having done something good, you might also qualify for a nice tax break. More than ever, the process for giving your car to a charity is very simple. One thing you won't have to do is argue about the price.
Car charities accept all kinds of motorized vehicles: trucks, vans, RVs, boats, trailers, planes and motorcycles. Many charities claim they can't meet the demand for good used cars. So, these car charities need your help. Most car charities fund their programs by selling donated vehicles at auctions.
If you qualify, the tax deduction can also come in handy at the end of the year. To qualify you must be able to itemize your deductions on your tax return. Check with your accountant to see if you qualify. Make sure you get a receipt from the car charity. The receipt will include three things: the car's value, the charity's name and donation date. The receipt is essential, especially in the case of an IRS or state audit.
Unfortunately, you can't just take the Kelly Blue Book value for the car anymore. You have to wait until the charity sells your car. Then you can only deduct up to the amount of the sale. If you're just in it for the good feeling, the tax deduction is just a bonus anyway. But, not everyone can deduct their donated car. You have to be able to itemize your deductions.
Again, the amount of deduction is the value of the car up to $500 or the amount for which the car is sold, if above $500. So how is the value of your donated car determined? You can deduct the full market price if your chosen car charity uses the vehicle for its own purposes: deliveries, pickups, or passenger transportation. That means that under the new tax regulations you can only deduct the fair market value of the car if the charitable organization uses the car in direct connection with their car charity. You can find the fair market value for your vehicle in the official Kelly Blue Book.
One last thing to remember - You must have the title. There are some car charities that will accept a donation without a title, but most will not. At the time of the donation, you'll give the charity the title, the keys, and all of the paperwork.
Giving to a car charity is easy. It's a lot easier than selling your car on your own or trading it in. You will make a positive effect on your community. And if you qualify, you may also receive a significant tax deduction.
Chris Roberts writes for http://www.carbuyingguideonline.com/ Car Buying Guide Online. Don't miss his articles on http://www.carbuyingguideonline.com/blog/2007/11/19/car-auctions/) Car Auctions and http://www.carbuyingguideonline.com/blog/2007/11/16/car-insurance/) Car Insurance. You are welcome to reprint this article - but get your own http://www.uberarticles.com/?id=15604&b=79 unique content version here.
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