The Internal Revenue Service (IRS) recently issued
Publication 4303 “A Donor’s Guide
to Car Donations” which offers advice to
those donating their unwanted cars to charity.
Before donating your car, the guidelines recommend
you:
- Make sure you donate your car to a qualified
organization. Not all charities are
alike. Donating to a 501 (c)(3) public
charity will ensure that your donation will
be deductible.
- Make sure you will receive a tax benefit.
To claim your deduction, you must itemize
on your federal tax return. In addition,
there are certain limitations on charitable
contribution deductions. Check with your tax
advisor or the IRS for details.
- Be honest in determining the value of your
car. Only the fair market value can be deducted.
This is usually not the same as the
“high blue book value.” If
the fair market value exceeds $5,000, you
must have a written appraisal.
- Make sure the charity you donate to provides
you with all necessary tax receipts.
For more information on car donation, call
cars4charities at 1-866-448-3487 or log onto
their Web at site www.cars4charities.org.
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