Car Donation Tax Law

Before you choose to donate a car, you have to select the prestigious and trusted organization according to car donation tax law. Donating a car can be rewarding thing and a blessed thing because of you help somebody’s live and it will automatically get you a tax writes off as you see the car donation tax law. You need to choose the charity that is a qualified 501(c)(3) IRS registered charity. There are many local churches, temples, and other religious institutions that are qualified as well to claim a full tax deduction

Car donation tax law is according to a general guideline from the IRS: “Donors should understand the way that the American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec 31, 2004. If the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale. Under the new rules, the charitable organization must provide an acknowledgment to the donor within 30 days of the sale stating the amount of gross proceeds. Alternatively, if the charity significantly uses or materially improves the vehicles, the charity must certify this intended use and duration and provide an acknowledgment to the donor within 30 days of the contribution. If the charity significantly uses or materially improves the vehicle, generally, the donor may deduct the vehicle’s market value.”

IRS officials recommend that people who want to donate their vehicle by Dec. 31, 2004, take the following steps according to car donation tax law: 1st check that the charitable organization is qualified. 2nd itemize in order to benefit. 3rd calculate the fair market value. 4th deduct only the car’s fair market value. 5th document the charitable contribution deduction. 6th contact State charity and IRS officials when you are in doubt

Source: http://www.donatingacar.us/car-donation-tax-law-710.html#ixzz1SWpmhVEj