Free Articles at Neutron Marketing Article Publishing and Distribution » Automotive » Inisghts On Car Donation For Tax Reduction
Previous Article - How to Ride A Vespa Scooter Safely!
Next Article - Do-It-Yourself - Hydrogen Generator Car - In A Day

View PDF | Print View | Html Version
by: RayLam
Total views: 1
Word Count: 300

The IRS has taken steps to take the guesswork and confusion associated with car donation tax deduction with a new law. When January 1, 2005 rolled around, you were able to deduct the full price that the charity of your choice receives for the sale of your car.

Determine the value of your used car. Although the blue book might help you determine the value of your car, you should read IRS Publication 561, Determining the Value of Donated Property (available on the IRS's website), to see what your car really worth.

With the new law if your car sells for more than $500 at the auction where your car will be sold, the charity is obligated to send you a receipt that has your name and vehicle identification number or VIN of your car. They must also state that your donation was "arms length" which means that the person or organization you donated your car to is not related to you in any way whether it is your family or a business associate. They must also include the selling price of your car. This is the fair market value price. It is that simple. No more searching through records and books trying to find the right numbers to make your car donation tax deduction.

Make your donation. After you have made the donation, make sure to ask for a written acknowledgement from the charity. You will need to attach this acknowledgement to your tax return in order to get your tax deduction.

When applying for the car to donate for tax deduction you must also file a Charitable Contribution Deduction. As well as this you must be immaculate in keeping records of all your receipts and forms. This will help you to achieve the most from the car to donate for tax reduction.

About the Author

Learn about car donation centers by visiting http://car-donation-advisor.info and get a FREE limited report on "Car Donation Programs" by visiting http://car-donation-advisor.info,a website providing free advice on how to donate your car

---

Rating: Not yet rated

--Choose-- 0 1 2 3 4 5

No comments posted.

Add Comment

Enter the code shown