Car Donation Tips Things You Need To Know Before Donating Your Car-tsumori chisato

Careers-Employment Car donation is a fantastic option for people who are looking to get rid of an old or unused car but dont want to deal with the classified ads or sneaky salesmen. When you opt for car donation, you not only get a nice tax break for your donation – you also help a good cause. Before you donate, however, read on for a few things you should know to make your experience run smoothly. 1. Choose an IRS registered nonprofit .anization. Once you decide on a charitable .anization, double check on the IRS website to ensure that they are registered with the agency. If you are donating your car for tax deduction purposes, the charity receiving your car donation must be registered with the IRS. Even if you arent donating for tax purposes, the tax break is still a nice side benefit. 2. Itemize your tax deductions. Taxpayers have two options: itemized or standard deductions. If you plan on receiving a tax break for your car donation, you will have to select itemized deductions. This will make sure you get your tax break for the car, but it will also mean itemizing all other deductions. The standard deduction rates will not apply. 3. Determine the value of your car donation. Lower quality cars, or cars not in working order will rarely fetch more than $500. For these, you can claim fair market value (up to $500) without any paperwork required, other than the receipt you receive from the donation service. If you donate a car worth more than $500, the amount of your deduction will be determined by the actual sale price of your car donation. The car donation service will contact you with a receipt showing the final sale price for your records. Cars in good condition will usually get much better prices, and, again, the car donation service will contact you with the final sale price. 4. Find a car donation service in your area. Many car donation services – the people that actually facilitate the donation between the donors and the charities – are local. Look for a nationwide chain, because theyll be sure to service your area, and theyll most likely have a better reputation. 5. Read the fine print. Some car donation services slip added fees into their contracts with donors. Make sure the one you choose doesnt charge you for anything extra. 6. Have your vehicle title handy. Most services will require the vehicle title. If you dont have yours, you can get a new one from the DMV. If youre donating your car to be salvaged for parts, you usually wont need to provide a title. 7. Fill out IRS form 8283. If youre planning on deducting more than $500 in non-cash donations from your taxes, you will need to fill out IRS form 8283. Most people doing car donation have to fill out this form. About the Author: 相关的主题文章: