Sunday, 7 July 2013

Guide to Donate a Car for Tax Credit

Guide to Donate a Car for Tax Credit.

The tax law have been enacted recently regarding the donation of vehicles. Not only a good thing to helps the charity but it also lowes the amount of tax you owe. If you want to donate your car to charity, ensure that the agency that you donate is legitimate and please keep very good records. Here is some information that may helps you.


1. Get a paperwork in order which have the car’s registration and title because the charity will not receive a car without enough information. Make sure that you have the key of the car and make a photocopies of the document  and include it in a file with other tax receipts.  Only donation to the  501 ( c ) corporation will deduct your tax, so find a good reputable 501 ( c ) charity.

2. Take not that the charity cannot accept a car with an outstanding  or incomplete lien on it. Make sure the vehicle is free and clear of all liens. Contact the charity which you will sign the title over to it because some states will not allowed blank titles to be transferred so fill the name of the transferee.

3. If you have vans or trucks it also can be donated because the demand was more higher than the cars. Make the arrangement to pick up the car. They will accept the cars that not running. Speaks in representative to find out its particular regulations. They usually require the keys and the notarized copy of the title to be left in the car. Get noted that taking the Blue Book value is not allowed. Ensure that you get the receipt by email or electronically. The tax deduction can be claimed when the charity sell the car and they will provide receipt which include your name, the vin of the cars and amount of the sold.

4.  Save the receipt in a tax file because it is important. The sale amount is the tax deduction that you will get. This donation must be reported on  IRS Form 8283. The tax deduction can be taken on the current year you donate the cars or the next years. It depends on when the cars was sold. If the car was sold in the late year the tax deduction may be postponed to the next year.


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