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.
