Car Donation Facts For You
Author: Christopher Luck

Donating money and good is a great way to help out worthy
causes while still helping yourself out on your taxes. Car
donation is no different. Even though some of the car donation
tax laws changed a few years back, this is still a great way to
help yourself and others. So if you have an old car and just
aren't quite sure what to do with it, then consider a
charitable donation of your vehicle.

As of 2005, the laws for car donation changed. For motor
vehicles, boats, and airplanes that are valued at more than
$500, things are a bit different than before. The allowable
amount of the deduction is now limited to whatever amount the
charity sells it for. The charity to which your car donation is
made is required to provide you with written acknowledgement of
your donation within 30 days of you making it. If the charity
provides any false or exaggerated acknowledgement, they can be
penalized.

As of the first of January in 2005, when you make a car
donation, the tax write off is based on how the charity uses
your donated car. If it is sold, you can deduct the gross sale
price. If, on the other hand, the charity uses the car for what
the new law calls "significant" tax-approved work of charity,
you would be able to claim the market value of the vehicle.
Again, however, there are stiff penalties for falsified
documents.

Some of the charities, despite acknowledging that the old laws
had problems, are skeptical of the new car donation laws. Many
of these organizations are concerned about what will happen
when the tax deduction responsibility is put in the hands of
the charities rather than the donors. A group of them actually
sent a letter to the Treasury Secretary suggesting that people
may be discouraged from donating when they are unaware of their
deduction amount. Not being able to weigh the cost to the
benefit of donation may discourage some auto donations.

If you do choose to make a car donation, you will find that the
process is very easy. Most charities that offer to take your
vehicle will have information on line or via phone about it. In
many cases, in fact, you can fill out the appropriate forms on
line to get the process underway. You also will likely not even
have to be home and the vehicle may not even need to be in
working condition. Many charities will come and toe your car
away if you can simply leave the title under a floor mat along
with the key and put it somewhere accessible
http://www.napadaily.com/category/automotive-guides. As soon as
the car is sold, you will receive a document in the mail letting
you know how much you can write off of your taxes, legally.

Since many charities rely on donations of all sorts: clothing,
cars, money, and even appliances, think about what you are
doing when you make an auto donation. By donating your vehicle,
you are helping out a worthy cause of your choice. In addition,
you are helping yourself out. Sure, the tax laws have changed,
but you can still benefit from your donation. The car doesn't
have to run to be eligible, so your write off might still be
more than selling it for junk. So feel good about yourself,
help your tax line, and get rid of that old junker by donating
your car.


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