Donate A Car To Charity To Lower Your Taxes
2:30 AM
Most people assume that donating a car to charity is something only the rich use to reduce their tax burden. Anyone can file a tax return with itemized deductions if they take the time and effort required to do so. You will be responsible for keeping any receipts to substantiate your deduction claims, donating a car to charity is now easier than ever.
Charity organizations have relied on donated items for may years, although this is not the main source of the overall donation revenues. In a report issued by the General Accounting Office in 2003, charities were not bothered much by car donations. The average charity held as little as six per cent in intake was due to car donation.
As you will need to keep all the recipts for your car donation, the self employed will have an advantage as they keep receipts as a normal part of conducting their business. The forms you need to claim a deduction for your car donation to charity can be provided for you by the charities themselves. The organizations must have a not for profit tax ID and be sanctioned by the IRS.
A car donation to charity can be next to impossible for individuals claiming a standardized deduction. If taxpayers take the time to write down all the deductible items, thsis can improve the benefit received. The tax burden can be reduced by as much as thirty to forty per cent for those who usually take the standard deduction by keeping accurate records.
Donating a car to charity is a viable method of reducing your taxes by using the value of the donation to put you into a lower tax bracket. As the amount of the tax savings can be substantial, there tends to be a flurry of car donations to charities as the end of the tax year gets closer.
Generally it is a good idea to not count on your car netting the sort of value at sale that you might imagine it would, given the Kelly Blue Book value listed. According to current IRS guidelines, donating a car to charity that nets over $250 must be accompanied by a receipt that clearly outlines how much value the car actually was able to be sold for by the charitable organization in question. This is usually the amount they received when it was sold on the wholesale or scrap markets.
It is always a good idea to talk to a CPA, especially if you already have the services of one retained for your regular tax preparation advice. If you own a business, this is especially true. Even the same car donation to charity can vary greatly in its value to an individual's return.
Charity organizations have relied on donated items for may years, although this is not the main source of the overall donation revenues. In a report issued by the General Accounting Office in 2003, charities were not bothered much by car donations. The average charity held as little as six per cent in intake was due to car donation.
As you will need to keep all the recipts for your car donation, the self employed will have an advantage as they keep receipts as a normal part of conducting their business. The forms you need to claim a deduction for your car donation to charity can be provided for you by the charities themselves. The organizations must have a not for profit tax ID and be sanctioned by the IRS.
A car donation to charity can be next to impossible for individuals claiming a standardized deduction. If taxpayers take the time to write down all the deductible items, thsis can improve the benefit received. The tax burden can be reduced by as much as thirty to forty per cent for those who usually take the standard deduction by keeping accurate records.
Donating a car to charity is a viable method of reducing your taxes by using the value of the donation to put you into a lower tax bracket. As the amount of the tax savings can be substantial, there tends to be a flurry of car donations to charities as the end of the tax year gets closer.
Generally it is a good idea to not count on your car netting the sort of value at sale that you might imagine it would, given the Kelly Blue Book value listed. According to current IRS guidelines, donating a car to charity that nets over $250 must be accompanied by a receipt that clearly outlines how much value the car actually was able to be sold for by the charitable organization in question. This is usually the amount they received when it was sold on the wholesale or scrap markets.
It is always a good idea to talk to a CPA, especially if you already have the services of one retained for your regular tax preparation advice. If you own a business, this is especially true. Even the same car donation to charity can vary greatly in its value to an individual's return.
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