Auto Donations the way to go
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Auto Donations
Are auto donations really the way to go? Absolutely, whether you have an old beat up car that won't
even start, or a newer one you are just tired of, auto donations can help both sides of the deal. If you have
an automobile, in any condition, then you should consider it for auto donations. This way, you would get a tax
receipt to help reduce your taxes, and the charity would receive the auto. For auto donations, the charity can
decide whether they wish to use the auto to help with their charity work, sell it, or sell it for scrap if it
really doesn't have any other use. Whichever way the charity goes, auto donations make a huge amount of sense in
this win-win situation.
Donating An Automobile To Charity? Dont Forget The Tax Deductions!
by Daniel Richards
When donating an automobile to charity, youll want to think about tax deductions. According to Publication 4303,
the Internal Revenue Service (IRS) and state charity officials provide general guidelines for donations.
In the case than an individual is eligible to deduct charitable donations for federal income tax purposes, there
are steps that must be taken. Only if the charity receiving the vehicle is a qualified organization, can this
happen. Charitable, religious, and educational organizations usually qualify.
To verify a charity organization, simply call the account services division of the IRS and see if it has tax
exemption status. If an organization is located at a church, synagogue, temple, or mosque, it is not required to
apply for exemption.
Some charity only allows for limited tax deductions. Your tax deduction cannot exceed 50 percent of your
adjusted gross income and other limitations may apply as well. You can research a specific type of charity
contribution and learn how it will affect your taxes. Generally though, the largest amount of money you can deduct
from your income tax return is simply the fair value of your automobile - whatever price a person would buy it
for.
It is important to take care of the vehicles records, as they may be required to authenticate your donation.
Furthermore, if you plan to deduct more than $250, you should ask for a written acknowledgment from the charity
about the donation. The document should feature the name of the charity, a description of the automobile, a
statement that clarifies that no goods or services, beyond religious guidance or instruction, were exchanged for
the automobile.
You must obtain this written acknowledgment on or before the due date of your return; the same year you donated
the vehicle. It can be a paper copy or a mere e-mail.
As for charities, they must be available for public inspection so as to secure their tax exemption status. As
well, they must provide documents that show their annual returns.
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Daniel Richards has an interest in Automobile related topics. To access more information on
vehicle donation or on auto donation, please click on the
links.
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So whenever you have an auto to dispose of, think about auto donations, and whether you would like
to feel good about getting rid of your car and helping others at the same time. For me auto donations is the
way to go every time!
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