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

Donate Car To Charity Los Angeles Definition

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Best Tips To Help You Donate Your Car

The car donation tax deduction program is a great idea to get rid of a vehicle that is eating too heavily into your expenses, clear out garage space and save on taxes. What’s better, you would feel good that you helped the community in your own way. It’s a situation in which every party involved emerges victorious.

However, to make the best of the process and maximize car donation tax deduction, it is vital to be equipped with every bit of knowledge and understanding regarding how the process works. One of the most important piece of information that no donor opting for car donation tax deduction can do without – since 2004, the laws limit the tax deduction to the amount the charity obtains by selling the donated car.

The first tip with respect to stepping into the car donation tax deduction program is to make sure that your car is in a condition fit to be donated. Follow it up with a quick consultation with your financial advisor to make sure you have understood the process right.

A most vital tip: do a lot of research. Hunt down a charity that is reputable, qualified and 501(c)3 IRS registered. Otherwise, you might miss out on the car donation tax deduction. Also, you might want to try and find out online national car donation organization that has tie-ups with charities across the nation. There are a lot of charities out there which do accept donations of vehicles but don’t involve car donation tax deduction. Feel free to ask as many questions you want of the charity to ensure authenticity. You can and demand to see IRS “Letter of Determination’. If it seems important to you, find a charity that is into the kind of social welfare activities you support. Check up the credibility of the charity with the Better Business Bureau of the city.

You have every right to find out whether the charity deals with the entire proceedings themselves or involves a third party and how much of the proceedings from the sale of the donated car would go towards welfare activities and services and how much to the auctioneer and the charity development fund. If the percentage seems unfavorable to you, move to another charity. It’s best to avoid middlemen and brokers in the process of donating your car to charity.

You would, in all probability, need your vehicle title while donating your car in order to be eligible for car donation tax deduction. If you have lost yours, apply to the State Motor Vehicle Department. It might take upto a month to obtain a duplicate, so apply well in advance of the time you want to donate the car.

Remember, if your chosen charity insists that you donate your car while retaining ownership rights, quickly move away to another charity. Under no circumstances should you donate your car without transferring ownership rights unless you are ready to be held responsible in case of any legal issues the car might be involved in at a later date.

Remember to make sure that the charity sends you the details of the sale within 30 days of the sale of the donated car. Update yourself about the car donation tax deduction implications and IRS rules based on the valuation of your car.

What You Need To Know Before You Donate Your Car To Charity

Donating your car to charity is a win-win – you get to enjoy car donation tax deduction and do good to the community. However, it is important to follow the right procedure while donating your car to charity and understand the car donation tax deduction implications. For that, thorough knowledge in order to obtain the proper knowledge is necessary. Since 2004, the laws limit the tax deduction to the amount the charity obtains by selling the donated car.

Shortlist a few charities that accept car donation, preferably ones that are into the kind of good work you support and believe in; this would make you feel good about donating your car, and not just for the tax deduction. The next step would be to find out if they directly accept car donation. Involving middlemen often eats away a huge portion of the revenues.

You must remember that donating your car to charity doesn’t automatically imply car donation tax deduction. If car donation tax deduction is the reason you wish to donate your car, you need to make sure that the charity you are donating your car to is 501(c)3 IRS registered. Otherwise, your car donation might not translate into tax deduction. Check out the official IRS website (http://apps.irs.gov/app/pub78) to check if the charity you have in mind is qualified to make car donation tax deduction applicable.

One very significant step in the process of car donation tax deduction is determining the value of your car. If the charity sells your car, you need to get a receipt from them which mentions the amount at which it was sold. If the charity keeps the car, gets work done on it before selling it or sells it for a low price to a needy person, use the Kelley Blue Book (http://www.kbb.com/) to determine the value of your car.

Car donation tax deduction can be categorized into:

1. If the car you wish to donate or have donated is valued $500 or less, you wouldn’t need any more pickup to enable car donation tax deduction.

2. If the car is valued at more than $500, download the IRS Form 8283 from http://www.irs.gov/pub/irs-pdf/f8283.pdf, fill it and attach it to your annual tax application.

Consult your State Motor Vehicle Department to learn if you need your vehicle title in order to allow for car donation tax deduction and enable transfer of ownership rights. If they say you do and you have lost yours, they will provide you with a duplicate title. Once you donate your car, make absolutely sure that you hand it over to them completely, that is, the charity accepts ownership rights. If the car remains registered in your name, you would be legally responsible for any crime the car might be associated with in future. By all means, get a receipt from the charity for the donation. Also, in case the charity doesn’t have a free car pickup service (many of them do), consider driving it over yourself (if it is in running condition). This saves the cost of hiring a driver and gives you the chance to hand it over personally.