onating a vehicle can be a profits from the transaction.
great way to give to your
favorite charity. The Taxpayers wishing to benefit from
government will recognize your such a charitable donation need
generosity with a special tax to keep the following points in
deduction, but certain mind:
requirements apply in realizing
these tax breaks. Itemize Your Deductions
To take full advantage of the
Policies regarding vehicle deductions available for your car
donations are not as donation, you need to itemize
straightforward as with other your deductions. Those who claim
types of charitable standard education are not able
contributions. The tax relief to benefit from this clause.
you can receive depends not only
on the claimed value of your Estimate the Fair Market Value
donation, but also on the way the Various factors must be
charity uses the vehicle. For considered in determining the
this reason, you may not know value of your car. Refer to a
what your full tax deduction will used car guide for precise
be at the time that you make your instructions to find your
donation. As of 2005, there have vehicle's value. Adjustments
been changes to the statutes for should be made depending on
tax deduction for vehicles accessories, mileage and other
donated to charitable trusts. If indicators of its general
the stated value of the donated condition.
vehicle is more than $500, and if
such vehicle is put up for sale Deduct the Fair Market Value
by the charitable trust, then the When making your claim, deduct
taxpayer is limited to the gross the fair market value of the
vehicle. This amount takes into car donation, and its fair market
consideration the condition of value.
the donated vehicle. You may not
claim the full value of the car. If you've donated a vehicle and
want to know if your contribution
Verify the Eligibility of the is tax deductible, contact the
Organization IRS at 1-800-829-1040, or for
The charitable trust must qualify TTY/TDD help, call
with the tax department in order 1-800-829-4059. If you are
for you to receive a tax benefit. concerned that contributions have
A good place to find a complete been sought for deceitful
list of recognized charities on purposes, contact the appropriate
with Publication 78, available state charity official, located
online and in public libraries. in the state Attorney General's
office.
File the Charitable Contribution
Deduction If you have a spare vehicle,
When claiming a tax deduction for consider donating it to your
your vehicle donation, it is favorite registered charity. The
essential to keep good records. organization, and the taxman,
Be sure to keep and record all will thank you.
receipts and forms related to the
About the Author:
Barbara Williams writes for several online magazines, on families and homes and home and family living topics.
Read more articles by:
Barbara Williams
Article Source: www.iSnare.com 
