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car-donation-tax-reliefCar donation - Important points you should keep in mind before taking up car donation and  claiming for the car donation tax relief 

bulletMost agencies looking for car donation are Not officially recognized charitable organizations to claim tax relief. The FIRST check before doing a car donation is check Publication 78,that is an exhaustive glossary of charitable organizations that are authorized to receive contributions that are tax deductible and for which tax relief is available.
bulletThe car donation value of the automobile involved in the car donation to the charitable organization should be the fair market value of the automobile- based on the car model,accessories,mileage and other indicators in order to claim accurate tax relief.If the cost of the car donation exceeds 500$,then the amount of gross proceeds stated by the charitable organization that is receiving the cost of the car,can only be the true market value of the car. 
bulletTax deduction of car donation contributions-You can deduct only the fair market value of the car.Also, you can claim for deductions for the car donation to a qualified charity organition only if you claim itemized deductions on your tax return statement. By nature (of our inherent laziness), we usually do not claim itemized deductions on our annual tax statement,but the only way to claim for tax relief on account of car donations is to file itemized deductions  on the income tax statement.
bulletDocumented evidence is needed to confirm the receipt of the car donation 

 

 

 

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Last modified: August 31, 2005