DONATE CAR FOR TAX CREDIT: Donate Car Christian Charity Los Angeles Tax Deduction California Charities NJ Massachusetts Of Your Choice Seattle

Donate Car Christian Charity Definition

Source:- Google.com.pk

We have been picking up donated vehicles via the Internet since the 90s. We are a fully recognized 501(C)(3) charity.
If you wish to make a car donation please BE AWARE of the following misleading terminology or procedures (scams) in regards to your tax deduction:
The above statements give the impression that the charity can provide something special to that donor by using that charity.
They seem to say, "If you make your car donation to our charity you will receive __________," (which would be some sort of tax benefit that perhaps another charity cannot provide--This is misleading).
No charity can influence or declare how much tax benefit you will receive from a car donation. All car donation charities are bound by the same IRS regulations.
Maximum Deduction --Full Fair Market Value — Be aware of Scams.
Your car donation tax deduction used to be based on the Actual Fair Market Value. There were IRS rules on how to compute this. And these rules applied to all car donation charities. So the above statements are misleading and if given without obvious qualifying statements would be a scam. .
According to the New Tax Law which went into effect January 1, 2005 the fair market value of a vehicle is no longer the primary determining factor. Please visit our New Tax Law Section to get the up-to-date information on noncash charitable deductions for vehicle donations.
There are some charities that promote that you will receive the Full Fair Market Value for your vehicle donation. As mentioned above if the charity does not provide full disclosure as to how this applies to your particular donation and situation it would be a scam.
IRS Publication 4303 states:
"Generally, the amount you may deduct for a vehicle contribution depends upon what the charity does with the vehicle as reported in the written acknowledgment you receive from the charity. Charities typically sell the vehicles that are donated to them. If the charity sells the vehicle, generally your deduction is limited to the gross proceeds from the sale. However, there are certain exceptions, described below."
The exceptions are:
"...the charity intends to make a significant intervening use of the vehicle, a detailed description of the intended use, the duration of that use, and a certification that the vehicle will not be sold before completion of the use."
"...the charity intends to make a material improvement to the vehicle, a detailed description of the intended material improvement and a certification that the vehicle."
"...the charity intends to give or sell the vehicle to a needy individual at a price significantly below fair market value and that the gift or sale is in direct furtherance of the charity’s charitable purpose of relieving the poor and distressed or the underprivileged who are in need of a means of transportation."
NOTE: If any charity claims that the are providing Full Fair Market Tax Deduction for your car donation be sure to see if their program falls under any of the above AND that it applies to all donors and all vehicles received, NOT just a few.
IRS warns of false claims or scams:
IRS Warns of Questionable Deductions such as a version of the above for Donated Vehicles:
IRS officials took this step after becoming aware of questionable practices that have surfaced recently. Some charities have sold donated vehicles at auction and claimed that the sales are to needy individuals at prices significantly below fair market value. By doing so, these charities have claimed that the sales trigger an exception to the general rule that the deduction allowed to the donor is limited to the proceeds from the charity’s sale.
The IRS’ position is that vehicles sold at auction are not sold at prices significantly below fair market value. Therefore, the IRS will not treat vehicles sold at auction as qualifying for the exception for sales to needy individuals at prices below fair market value.
Read the entire news story..
IRS AND STATE CHARITY OFFICIALS URGE CARE WHEN MAKING A CAR DONATION
Source: http://www.irs.gov/pub/irs-news/ir01-112.pdf
Here are a few quotes from that news release:
“When done correctly, donating a used car to a charity can help both the charity and the taxpayer,” said IRS Commissioner Charles Rossotti. “We want people to take a few simple steps to avoid possible problems and to make sure they get the proper tax deduction for their donation. Don’t get taken for a ride.’’
Fully Tax Deductible — Tax Credit — Another potential scam.
The statement "Fully Tax Deductible" is very misleading. The donation IS "fully tax deductible" for anyone that is eligible to claim such a deduction, BUT that is NOT everyone. This statement without full clarification is a scam.
To be able to have any tax deduction the person must itemize their deductions. Less than 50 % of Americans itemize deductions.
Another quote from the above IRS Release:
"ITEMIZE IN ORDER TO BENEFIT – Many taxpayers can’t take a deduction for car donations because they don’t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2001, the standard deduction will be $4,550 for single; $7,600 for married filing jointly). Less than one-third of the nearly 128 million individual taxpayers itemized in 1999, the last year for which complete data is available."
The statement that you will receive a "Tax Credit" is FALSE. There is no such thing as a tax credit for a car donation.
Visit our Tax Deduction Overview page for more information that a layman can understand.
Offering a Free Vacation AND a Tax Deduction
If a charity provides a commodity, for example a vacation package, in exchange for a car or vehicle donation then the tax receipt from that charity must state the fair market value of that commodity (the free vacation) and the fair market value of that commodity must be subtracted from the value of the car donation. In other words your tax deduction will be less.
For example, if your vehicle sells for $1000.00 at auction and your vacation package that you receive has a fair market value of $400.00 you can only deduct $600.00. $1000.00 for the donated car, $400.00 is for the vacation package and $600.00 would be the maximum you could deduct. ($1000.00 - $400.00 = $600.00)
We certainly do not want donors to be shocked be receiving a tax letter that states they have to subtract the fair market value of the vacation from the value of their vehicle. This is another example of a potential scam.
For more information on this you can view this page: Car Donation Tax Deductions.
We also urge you to read IRS Publication 4303—The most current IRS Publication regarding Tax Deductions for Vehicle Donations.
We are the first charity ever to provide a vacation or other offer, but we did so to assist those individuals that cannot benefit from a tax deduction or would rather have a nice vacation. Thus to be fair to donors and to be ethical within the regulations of the Internal Revenue Service we have two different programs. These programs are totally separate. The charity donation program and the vehicle recycle program.
If you do decide to donate a vehicle to any car or vehicle donation charity that makes these claims we strongly urge you to read the fine print on their websites and to be very familiar with the actual IRS regulations that are current.
What is the True Data about a Car Donation?
As mentioned above this has changed now since the beginning of 2005. For more information on this visit this web page.
Throughout this web site we do try to provide you with all of the true data so that you can avoid being mislead or avoid actual scams.
We urge you to take a few minutes to read the actual IRS references concerning you car donation so that you have the factual data. These references are not difficult to read and the sections of them pertaining to a noncash charitable contribution and a car donation are easily found in the Publications.
If you are not that familiar with how your taxes are prepared or filed please speak to the person that prepares your taxes and find out what a car donation may do for you as a tax benefit. Every person's tax situation is different. A tax preparer or Certified Public Accountant (CPA) should be able to assist you concerning your car donation.