How to Donate Your Car to Charity and Get a Tax Deduction - Basic Understanding

by: John Sudarta

Having your used car donated to charity is a win-win circumstance; the charity obtains the gift you make and you obtain deduction on tax. For making a car donation, below are some easy steps.

1. Comprehend the regulations. An excellent place to have the rule of the government read on the donation of a car is IRS Publication 4303,a guide for the donor toward Car Donations (on hand on the website of the IRS). This guide underlines several beneficial rules concerning car donation. For instance, one significant rule conveys that the donation of a car has to be made to organization with qualification to be able to obtain tax deduction.

2. Make certain your used car`s value. Even if the blue book can assist you determining your car`s value, you must read IRS Publication 561,making certain the Value of Donated Property (on hand of the website of the IRS), to find out the real value of your car.

3. Discover a charity to give your vehicle to. In case you possess connection to an organization of non-profit charity or to any charity, that organization may be your option for getting your car donated to. If not, search the internet to discover an organization, or you can always use the Yellow Book. In subsequent to you identifying a candidate, you must read IRS Publication 78, that has a list of institutions with eligibility for receiving tax deduction from contributions to charity. On the website of the IRS, this document is also on hand and it can be discovered. Ensure that the candidate charity has the eligibility. If not, you may not obtain the tax deduction you deserve!

4. Do your charity. You must remember to ask for acknowledgement written from related charity, soon after you do the donation. To be able to obtain the deduction on your tax, this acknowledgement has to be attached to your tax return.