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DONATE YOUR CAR TO CHARITY
Here are some of the many charities that take used cars for money. Most
will tow or collect your car at no charge and will do the paperwork necessary
for you to collect your tax savings.
Before you send your car away, remember:
- You must itemize your taxes to claim a deduction.
- Make sure the charity qualifies as eligible to receive deductible
contributions. Check IRS Publication 78 at www.irs.gov/bus_info/eo/eosearch.html
for the list of organizations qualified to receive deductible
contributions.
- Churches, synagogues, temples, and mosques qualify for tax deductible
contributions but do not need to register and may not appear in Pub.
78. Governments are also eligible and may not be listed in Publication
78.
- How much can you deduct?
- I always hear people say they deduct "blue book
value." Unfortunately, with the rise in popularity of car
donation programs, the IRS is paying much closer attention to the
claimed value of donated vehicles. Before you simply take
the full Kelly Blue Book retail for your car, familiarize yourself with
the idea of fair market value (FMV):
- IRS Publication 561 - Determining the Value of Donated
Property - helps you determine the value of your car and
specifies the information you need to keep to support the deduction
you claim on your tax return. You can download Pub. 561 at www.irs.gov.
In short, FMV is the price of your vehicle on the open market taking
into consideration the condition of the vehicle. Gone
are the days of taking full retail for a car with faded paint, worn
tires and torn interior.
- Even if the charity tells you to claim full blue book retail, be
aware that if the IRS determines the FMV to be significantly
different, you'll receive a smaller deduction.
- IRS Publication 526 - Charitable Contributions - offers
general information on figuring the amount of your charitable
deduction and on written records/forms required.
Be aware that the IRS requires different info depending on the
amount of the deduction.
- Make sure your vehicle donation will actually benefit the charity.
Some donation programs are run by fundraising organizations on behalf of the
charity. In specific, ask what share of the proceeds goes to the
charity. If you have doubts or questions, you'll find a list of state
charity official offices at www.nasconet.org
(NASCO - the National Association of State Charity Officials).
- Due to the large number of donated cars, some charities will only take a
car if it runs. In other words, they won't just come tow away
that old rusting 1972 Chevy.
- You can also donate trucks, vans, SUVs and boats to most charities.
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