Donate A Car To Charity To Lower Your Taxes
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.
A charity that is sanctioned by the IRS and has a legitimate non-profit tax ID number should be more than able to provide you with the required paperwork. These forms are necessary for you to make your deduction, the same as with any other type of deduction you save a receipt for.
It is not unusual for a taxpayer to decrease their tax bill by up to forty per cent by taking the time and effort to keep accurate records.
With the extra money available for donation that can come from car donation, charity giving can be very useful for bringing one's income down below the level where they might put you into a higher tax bracket. Near the end of the year there is often an increase in auto donation by those who are nearing a higher bracket they wish to avoid. This can save you quite a bit when done correctly.
As a rule of thumb, the sale value will be nowhere near the value it is listed as having in the Kelley Blue Book. This is due to the charity selling the car onto the wholesale or scrap markets. The IRS requires you to keep a receipt showing exactly how much the charity was able to get for the car, if the amount is over $250.
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. - 21396
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.
A charity that is sanctioned by the IRS and has a legitimate non-profit tax ID number should be more than able to provide you with the required paperwork. These forms are necessary for you to make your deduction, the same as with any other type of deduction you save a receipt for.
It is not unusual for a taxpayer to decrease their tax bill by up to forty per cent by taking the time and effort to keep accurate records.
With the extra money available for donation that can come from car donation, charity giving can be very useful for bringing one's income down below the level where they might put you into a higher tax bracket. Near the end of the year there is often an increase in auto donation by those who are nearing a higher bracket they wish to avoid. This can save you quite a bit when done correctly.
As a rule of thumb, the sale value will be nowhere near the value it is listed as having in the Kelley Blue Book. This is due to the charity selling the car onto the wholesale or scrap markets. The IRS requires you to keep a receipt showing exactly how much the charity was able to get for the car, if the amount is over $250.
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. - 21396
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To learn about donating a car to charity to lower your taxes, check out Cars Donate
posted by X - Men @ 5:41 AM
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