donate car for tax credit

If you want to Donate your car for tax credit is a precise and unique way to quickly get rid of your car with a good purpose. Donating a car to charity can be a great way to get a tax deduction. All you need to do is called charity that willing to accept your old vehicle and towing it away. However, doing a little planning will ensure that you can maximize your tax savings from donations. Remember, the tax deduction for your car donation is limited to the sales price not the dealer price.

Use the sales price for charity as the amount of your tax deduction. If you want to claim the fair market value for donate car for tax credit, you must specify the deduction. For example, if the charity sells the car at auction for $ 2500, your deduction is limited to $ 2,500, even if the fair market value is $ 3,500. However, if the charity sells the car at a discount for those who in need or save the car for internal purposes, then you can claim a tax deduction for the fair market value.

To determine this, you can use the reputable used car prices guide to calculate your deduction using the current fair market value. However you need to ensure that the selling price listed is for the same vehicle with yours, so make sure you check out the model and year, and whether it sold under the same conditions and had similar accessories to your vehicle.

City council campaign organization or clubs may be nonprofit, but donating a car for them would not provide tax benefits for you. In addition, you cannot give a car donation to an individual, no matter how poor they are. For example, giving your used car to a poor single mother cannot be put into a charitable donation unless you donate a car to the temple and they give it, because of their own decisions, to that single mother, then you can claim a deduction taxes. Only use quality charities that can provide such benefits, including religious organizations, educational institutions, and nonprofit hospitals.

donate car for tax credit

Unlike some other car donation programs, Good News Garage does not offer "free gifts" in exchange for car donations. Gifts impact the value of your charitable tax deduction. According to the IRS Publication 526: Charitable Contributions, any benefit received as a result of the donation must offset the tax deduction. Good News Garage does not offer gifts for vehicle donations, because we do not wish to devalue your tax deduction.

Want to know more about the tax deduction when donating your car?  Here's how it works:

STEP 1:  Donate your car, truck, van, motorcycle, boat, RV, etc.
Vehicles of any age or condition (cars, trucks, vans, and also motorcycles, scooters, RVs, lawn tractors, boats and planes!) may be donated to Good News Garage from any New England state as well as eastern New York. We may be able to accept donations beyond the New England are as well. Donate by calling toll free 877.GIVE.AUTO (877.448.3288), or you can donate online.

STEP 2:  Good News Garage inspects your vehicle
Qualified mechanics conduct a 72-point inspection of the vehicle. Depending on a number of factors, including the mileage and cost of repairs needed, Good News Garage determines how to process the vehicle.

STEP 3:  Good News Garage processes your vehicle
Scenario 1:  Your vehicle is repaired and provided to a low-income family. Lack of transportation is a major barrier to employment and education for the  families we serve. When a vehicle is provided to a family in need, the donor may deduct the fair market value (defined as the price the car would have sold for on the open market). To determine your vehicle's value, please refer to the Kelley Blue Book or NADA websites.

Scenario 2:  Your vehicle is sold at auction to benefit Good News Garage. Donated luxury cars, cars too expensive to repair, or cars that are not a good match for families are sold at auction. Money from these sales help pay for repairing vehicles for families. On average, GNG spends more than $1,500 on every car provided to ensure it is safe and reliable. When a car, truck or van goes to auction, the donor may deduct what the car sold for or $500, whichever is greater. 

STEP 4:  Good News Garage sends you a tax deduction letter
Once your car donation has been processed (which can take eight to 12 weeks) you will receive a letter in the mail outlining what happened to your vehicle and how much you can deduct on your taxes. Please note that as required by the IRS, Good News Garage will need to include your social security number in your tax deduction paperwork if your tax deduction is more than $500.You do not need to provide your social security number if you do not want a tax deduction.

Source  - http://www.goodnewsgarage.org
According to the attorney general’s office, Los Angeles-based People’s Choice Charities claimed that 100 percent of the net proceeds from the sale of donated cars would go to the donors’ chosen charities, but 97 percent of the donations were spent on administrative costs, such as towing and car repairs, and advertising. An audit conducted by the attorney general’s office found that from 2007 to 2012, People’s Choice Charities reported it had donated more than $700,000 to other nonprofits, while actually only donating $174,000.

The lawsuit claimed People’s Choice Charities also developed a “cash back” program whereby vehicle donors could receive money in return for their “donation,” effectively transforming a charitable organization into an unlicensed used car dealership in violation of state law.

Similarly, attorneys said Ventura-based Cars 4 Causes used 87 percent of its donations to pay for items such as advertising and administrative costs, including staff salaries, while only 13 percent was directed to actual charities. From 2009-2014, the organization reported that $15.9 million was donated to charity, but in reality, it only gave $5.4 million to charity, attorneys said.

Meanwhile, Cars 4 Causes turned down many requests from individuals in need seeking a car, including single mothers, college students, and seniors, all while paying thousands towards staff salaries and millions to advertisers, the lawsuit said.
us car
If you want to Donate your car for tax credit is a precise and unique way to quickly get rid of your car with a good purpose. Donating a car to charity can be a great way to get a tax deduction. All you need to do is called charity that willing to accept your old vehicle and towing it away. However, doing a little planning will ensure that you can maximize your tax savings from donations. Remember, the tax deduction for your car donation is limited to the sales price not the dealer price.

Use the sales price for charity as the amount of your tax deduction. If you want to claim the fair market value for donate car for tax credit, you must specify the deduction. For example, if the charity sells the car at auction for $ 2500, your deduction is limited to $ 2,500, even if the fair market value is $ 3,500. However, if the charity sells the car at a discount for those who in need or save the car for internal purposes, then you can claim a tax deduction for the fair market value.

To determine this, you can use the reputable used car prices guide to calculate your deduction using the current fair market value. However you need to ensure that the selling price listed is for the same vehicle with yours, so make sure you check out the model and year, and whether it sold under the same conditions and had similar accessories to your vehicle.

City council campaign organization or clubs may be nonprofit, but donating a car for them would not provide tax benefits for you. In addition, you cannot give a car donation to an individual, no matter how poor they are. For example, giving your used car to a poor single mother cannot be put into a charitable donation unless you donate a car to the temple and they give it, because of their own decisions, to that single mother, then you can claim a deduction taxes. Only use quality charities that can provide such benefits, including religious organizations, educational institutions, and nonprofit hospitals.