Tips to donate a car to charity

by Alvin Smith

A charity has donated a vehicle to transport or freight obviously benefit directly from this gift. However, in many cases , cars are sold in bulk, or to collect or an ATM for charity charity . In the case of a broker , the organization usually receives a flat fee per car, sometimes as little as $ 45 per car.

Here are some tips for donors who want to donate a car to charity . The 2004 law limiting tax deductions for the donor car donations , the price at which the charity sells the car.

To receive the maximum tax deduction for your car donation to a charity using the vehicle on its activities or to give a person in need. Otherwise, no tax deduction is limited depending on the market value, but the amount of money that love receives from the sale of your car. View car donations : Under taxpayer for a ride again.

Make sure the charity is eligible to receive tax-deductible donations . Order a copy for your records from the IRS determination letter organization , check your tax-exempt status .

Make sure to get a receipt from the charity to donate your car .

Note that non-monetary donations among the most common causes of an IRS audit , you want to prove the value of the car and keep track of it .

If the car is worth more than $500 , the donor must complete Section A of IRS Form 8283 and attach it to your return . Donors must present his / her tax return a written acknowledgment from the charity. When love is selling the car, the charity of the donor must be a confirmation that the car was sold to " arm " between independent parties and the selling price of the vehicle within 30 days of supply .

In this case, the tax deduction for donors on the total amount of the charity sells the car limited . If love does not sell the car , you must provide the donor with a receipt within 30 days of the sale . The organization may also be required to obtain certification to the donor showing how you plan to use or improve the car and stating that he is not to sell or dispose of, the car will provide . The sanctions imposed on charities that provide fraudulent acknowledgments to donors.

If the car is worth $ 5,000 or more , an independent evaluation is necessary . The donor must also complete Section B of IRS Form 8283rd For cars worth less than $ 5,000 , use the Kelley Blue Book , the . Hearst Black Book or a guide of the National Automobile Dealers Association ( NADA ) to determine the market value

Make sure the correct number of the date, mileage and condition of your car . The choice of the largest number of car model and year, regardless of other factors can not pass the exam with the IRS.

Take pictures of the car and save receipts of new tires or updates to check its value.

Remember, it is the donor, not the love that is necessary to drive the car to be assessed and to pay penalties if an IRS challenge finds its dark silhouette.