ANSWERS: 1
  • Donating a vehicle to charity benefits the charity, but the generous gesture has tax benefits for you. There are many things to know when donating a car to charity.

    Tax Write-Off

    You can write off the amount the charity makes from selling your car.

    Donation Receipt

    The charity will give you a deduction amount within 30 days of receiving or selling your vehicle. The amount will come in a letter, which is your receipt. This receipt is referred to as an acknowledgment by the IRS (Internal Revenue Service).

    Requirement If Your Donation Is Over $500

    If your tax deduction is in excess of the $500 maximum, your acknowledgment must have your name, tax payer identification number, and one of the following: Charity statement proving no goods or services were exchanged for the car; a description and estimate of the value of the goods or services, if applicable; statement that goods and services provided by charity were strictly for religious benefit, if applicable.

    Finding a Charity

    An internet search engine is an excellent resource for finding reputable charities.

    Donating Information

    Call the charity and they will pick up the car or tell you where to drop it off.

    Source:

    Tax Benefits For Car Donations

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