Would you like to have real information about tax deductions and
your charitable contribution?
Please read this page.
TWO FREQUENTLY ASKED END OF YEAR QUESTIONS REGARDING TAX DEDUCTIONS:
QUESTION #1:
Will my car donation be good for the year that I sent in the donation form, even if I don’t receive the receipt until the beginning of the New Year?
ANSWER: YES!
IRS Publication 4303, “A Donor’s Guide To Vehicle Donations” states:
“… the written acknowledgment must contain … the date of the contribution…”
The date of contribution is the date that we received the form. So it can even be on the 31st of December and will still be for that tax year.
The only exception might arise if you cancel the donation and then resubmit it later, or if it is canceled by us or the towing/auction facility due to reasons of inability to make pick up arrangements or lack of proper vehicle documentation, etc. Generally if you work with the towing/auction facility and assist in any problems that might arise then your donation will still be considered effective the date you filled out the form.
QUESTION #2:
If I submit the donation form on the last few days of the year and the towing/auction facility does not pick up the vehicle until the beginning of the New Year does it still count towards the current year, i.e. the year I submitted the form online?
ANSWER: YES!, as stated above.
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All such donations donated to charitable organizations granted tax exemptions
under section 501 (c) (3) of the Internal Revenue Code are tax deductible.
WARNING: Not all charitable organizations
have been granted tax exemption under section 501 (c) (3) of the Internal
Revenue Code. We would advise you to read what is stated by any charity
donation site.
The IRS has granted tax exemption under section 501 (c) (3) of the Internal
Revenue Code to our charity
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Itemizing Taxes - Do I need to itemize deductions?
If your primary motivation in donating a boat or other vehicle is to
gain a tax deduction you will need to itemize your deductions on your
Federal and State Tax Returns.
If currently you are not itemizing your deductions on a Long Form, your
accountant would be able to tell you if making a boat donation would justify
switching to itemizing your yearly deductions and using the longer form.
We suggest you visit our IRS
Information page and check out all of the links to the IRS website
to get a complete understanding of the IRS view of a noncash charitable
contribution.
You can also click on the link to find out about IRS Form 8283 which
is a simple form used when claiming a noncash charitable contribution
on your tax return. We provide a link for the form and for the instructions
for the form.
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Would you like to have real information about tax deductions and your charitable contribution?
Please read this page.
www.cardonation.nettop of page
All such donations donated to charitable organizations granted tax exemptions under section 501 (c) (3) of the Internal Revenue Code are tax deductible.
WARNING: Not all charitable organizations have been granted tax exemption under section 501 (c) (3) of the Internal Revenue Code. We would advise you to read what is stated by any charity donation site.
The IRS has granted tax exemption under section 501 (c) (3) of the Internal Revenue Code to our charity.
We suggest you visit our IRS
Information page and click on the link to the IRS News Release: IRS
AND STATE CHARITY OFFICIALS URGE CARE WHEN MAKING A CAR DONATION. You
can read this article for special tips from the IRS when making a charitable
contribution of a vehicle.
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Itemizing Taxes - Do I need to itemize deductions?
If your primary motivation in donating a car, truck, RV, boat or other vehicle is to gain a tax deduction you will need to itemize your deductions on your Federal and State Tax Returns.
If currently you are not itemizing your deductions on a Long Form, your accountant would be able to tell you if making a car donation would justify switching to itemizing your yearly deductions and using the longer form.
We suggest you visit our IRS
Information page and check out all of the links to the IRS website
to get a complete understanding of the IRS view of a noncash charitable
contribution.
You can also click on the link to find out about IRS Form 8283 which is a simple form used when claiming a noncash charitable contribution on your tax return. We provide a link for the form and for the instructions for the form.
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Does the new tax law affect how much I can deduct on my 2005 income tax return?
Thanks to the new tax law, the IRS has taken the guesswork out of how to determine the value of your vehicle.
Beginning January 1, 2005 you may deduct the full price we receive for the sale of your vehicle. This greatly simplifies the process for you in several ways:
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If your vehicle sells for more than $500 you’ll know exactly the amount you may deduct, eliminating guesswork. Thus you no longer have to research and come up with an estimate of the fair market value of the vehicle.
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This also eliminates the risk of you getting into trouble by overstating the value of your deduction on your tax return.
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This saves you both time and risk.
Here is how it works:
Under the new law, if your vehicle sells for $500.00 or more at the dealer auction house, we are now required to send you a receipt containing the following information:
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Your name and the VIN of your vehicle;
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The fact the donation was "arms length", i.e. that we are not related to you in any way, family or business-wise;
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The selling price of your vehicle becomes its fair market value.
This makes the entire procedure very simple for you. And eliminates any risk from the IRS.
If you car sells for less than $500.00 at auction, you may deduct what you consider as the fair market value of your vehicle, as long as that figure is under $500.00.
In this case, we will be sending you a less detailed tax receipt that simply acknowledges your donation (with your name, date of your donation, and the description of your vehicle).
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What proof do I need for my deduction?
You will need a tax receipt with a 501 (c) (3)'s name and Federal Tax
ID number on it verifying the date, the year, make and model of your vehicle
donation. You should keep this receipt for at least three years with your
all of your tax information for the year you made the charitable contribution.
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| Fair Market
Value | Tax
Deductible | Itemizing
Taxes | Tax
Benefit | Donation
Proof | 
