DONATE CAR FOR TAX CREDIT: Donating A Used Car Los Angeles Tax Deduction California Charities NJ Massachusetts Of Your Choice Seattle

Donating A Used Car Definition

Source:- Google.com.pk

Thanks to the new tax law, the IRS has taken the guesswork out of how to determine the value of your vehicle.
Beginning January 1, 2005 you may deduct the full price we receive for the sale of your vehicle. This greatly simplifies the process for you in several ways.
Under the new law, if your vehicle sells for more than $500 then the following applies:
If your vehicle sells for more than $500 you’ll know exactly the amount you may deduct, eliminating guesswork. Thus you no longer have to research and come up with an estimate of the fair market value of the vehicle.
The selling price of your vehicle becomes its fair market value and is what you can deduct on your tax return in most cases.
This also eliminates the risk of you getting into trouble by overstating the value of your deduction on your tax return.
This saves you both time and risk.
If you car sells for $500 or less at auction, you may deduct what you determine as the fair market value of your vehicle or the amount the vehicle sold for, whichever is less, and as long as that figure is under $500.00.
To provide donors with an idea of what their vehicle donation may sell for at an auction we have begun adding some of this information to our website.
IMPORTANT: Click here for the Latest Tax Information about How to Determine the Value of your tax deduction
NOTE: Some of this information has been revised please see our new IRS Publications 526, 561 and 4303 pages for latest revision.
TIPS for owners buying or selling a used car:
If you are looking to sell your old car as a private sale you might get some tips from this website.
If you are interested in trading in your old car for a newer here are some good tips.
And, of course, you can always donate your car to our charity so we can continue our crusade to assist children in times of crises.
Our charity is fully recognized as a
bona fide 501(C)(3) Charity by the IRS, and does provide the
Official Receipt you will need for your tax deduction.
We have been picking up donated vehicles through the Internet since the 90s.
1. How do I determine the FMV for a luxury car, standard car, foreign car, van or pickup truck?
2. How do I determine the FMV for a boat, trailer, motorcycle, RV, truck, mobile home, jet ski, and other vehicles that are not cars?
3. What other methods exist to find the FMV of a vehicle?
4. IRS information on determining the FMV of a vehicle.
5. IRS FMV links
1. For a luxury car, standard car, foreign car, vans, pickup trucks, etc. use one or both of the following:
Follow our step-by-step instructions using the Kelley Blue Book.
Or use Edmund's True Market Value Used Car Appraiser
2. When you are trying to determine the value of a boat, trailer, motorcycle, RV, truck, mobile home, jet ski, and other vehicles that are not cars, vans, pickup trucks, etc. the NADA Price Guide is almost always best.
NADA Price Guide
3. You can determine the fair market value of the vehicle donation by checking with used car or boat dealer's to find out what people are paying. You just call up local dealers and ask.
You can also check magazines, newspapers, online references and other publications to find other information, or to find out the asking price for a similar vehicle. Keep in mind that the asking price is usually not what the purchaser ends up paying, so asking prices will tend to be more than the value of the vehicle.
4. IRS Information
In IRS Publication 561 the term fair market value is defined:
" Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts."
The IRS also states in this publication:
Cars, Boats, and Aircraft
If you donate a car, a boat, or an aircraft to a charitable organization, its FMV must be determined.
Certain commercial firms and trade organizations publish monthly or seasonal guides for different regions of the country, containing complete dealer sale prices or dealer-average prices for recent model years. Prices are reported for each make, model, and year of used car, aircraft, truck, recreational vehicle, and boat. These guides also provide estimates for adjusting for unusual equipment, unusual mileage, and physical condition. The prices are not “official,” and these publications are not considered an appraisal of any specific donated property. But they do provide clues for making an appraisal and suggest relative prices for comparison with current sales and offerings in your area.
These publications are sometimes available at a bank, credit union, or finance company.
Except for inexpensive small boats, the valuation of boats should be based on an appraisal by a marine surveyor because the physical condition is so critical to the value.
Example. You donate your car to a local high school for use by students studying automobile repair. Your credit union told you that the “blue book” value of a car like yours is $1,600 in good condition. However, your car needs extensive repairs. After checking with repair shops and used car dealers, you find that the car should sell for $750. You may use $750 as the FMV of the car.
If the car is very old or if it is a vehicle that is not listed in one of these guides then the following techniques can help out.
You can check your local paper to get an idea of the asking price of a car or vehicle such as yours. But understand that the asking price is not the "agreed upon price" which will usually be less.
You can contact used car dealers in your area to get an idea of the value of the car. If the vehicle is not a car then contact the dealer that would sell such a vehicle. But if they give you the price they would sell such a car or vehicle for understand that the price you get would usually be less.
Check the Internet to find out the asking price for a vehicle like yours. Understand that the area in which a vehicle is being sold will also make a difference in its final selling price.
Once the fair market value has been determined you should keep a record of everything you did and any printouts as a permanent record for your car donation and for the tax deduction.