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Donate Car:Donate Car for Tax Credit

Some critics have claimed that car donations are essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread; in 2000, 733,000 U.S. taxpayers reduced their taxes by $654 million.

donate car

Although advertised as an easy way to dispose of an old car, donors need to fulfill certain post-donation requirements to qualify for the tax deduction,such as obtaining a written acknowledgment of the car's subsequent sale by the charity, and itemizing tax returns instead of taking the standard deduction.

donate car

For vehicles valued at less than $500, the deduction amount comes from the donor's own estimate of the car's value, even if the charity receives less money from its sale. Deductions greater than $500 are limited to the proceeds of selling the vehicle, usually at auction. The U.S Internal Revenue Service advises that starting in 2005:

donate car

The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a claimed value of more than $500 changed at the beginning of 2005 as a result of the American Jobs Creation Act of 2004. In general, that Act limits a donor’s deduction to the amount of the gross proceeds from the charity’s sale of the vehicle.

For vehicles valued at over $500, taxpayers are required to attach the charity's written acknowledgment to their tax return.

donate car

Car Donation Programs

Charities who contract with IAA’s Donation Division, including the Boy Scouts of America and the American Red Cross, typically see around 72 percent of the gross proceeds from the sale of a vehicle, which is about as good as it gets.

Charity Motors
Charity Motors is a highly efficient charity that accepts vehicle donations, which they turn around and sell to individuals in need for 50 percent of the fair market value, and they donate a high percentage of the proceeds to the charity of your choice.

donate car

 

 

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