| With the start of the New Year and tax time right | | | | or services for your donation. Or... |
| around the corner you are probably looking for items | | | | - A statement provided from the charity with a |
| that you can deduct to reduce your taxable income. | | | | description and fair market value of goods or |
| Since the laws on what can be claimed vary from | | | | services they may have provided to you. Or... |
| state to state and country to country there is a lot | | | | - If goods or services were provided in the form of |
| of confusion about what a deduction can be. In the | | | | non-tangible services (ex: :religious advice) this must |
| US the Internal Revenue Service (IRS) has many | | | | be stated. |
| documents that can be use to determine what can | | | | - For donation amounts that exceed $500 you will |
| and cannot be a deduction. | | | | need to gather additional information before trying to |
| One aspect of tax deductions that is increasing in | | | | deduct the donation amount. When you receive the |
| popularity has been car and vehicle donations. A | | | | written acknowledgement from the charity it must |
| simple process that both the donor and the charity | | | | contain additional information.o Your name and Tax |
| can benefit from. A perspective donor gives a vehicle | | | | Identification Numbero The vehicle identification |
| to a registered charity. That charity does one of | | | | number must be present.o The date of the vehicle |
| several things with it. | | | | donation must be includedo One of the following |
| - They can sell off the vehicles in running order and | | | | must also be included with the date of the donation |
| use the proceeds to fund their organizations. | | | | - A statement saying you never received any goods |
| - If the vehicle is not on running order it may be | | | | or services for your donation. Or... |
| repaired or sold as scrap. | | | | - A statement provided from the charity with a |
| Either way the charity benefits from the donation | | | | description and fair market value of goods or |
| and so do the worth while causes they support. | | | | services they may have provided to you. Or... |
| It is a simple process, however, as a donor you have | | | | - If goods or services were provided in the form of |
| to determine a couple things before you can legally | | | | non-tangible this must be stated. |
| write off any contributions made by donating your | | | | -The charity itself must have tax exempt status with |
| car. | | | | the Federal Government. Most education and religious |
| First you have to be eligible to receive the tax | | | | organizations are tax exempt. The IRS maintains a |
| deduction. This can be as simple as itemizing the | | | | particle list of those organizations that have tax |
| deductions on Schedule A of Form 1040. However | | | | exempt status. Go to the IRS website and search |
| there are other limitations that you must be aware | | | | for Publication 78, Cumulative List of Organizations. |
| of before simply deducting the donation. | | | | This will be your best place to start for determining |
| - Does the vehicle you are intending to donate qualify | | | | which charities you can donate to and receive a tax |
| as a tax exempt vehicle? This is obviously important | | | | write off. |
| and there is a good chance that it will. Most vehicles | | | | The charity itself must have tax exempt status with |
| that are legal for public roads are able to be used as | | | | the Federal Government. Most education and religious |
| a tax deductible donation. This also includes boats and | | | | organizations are tax exempt. The IRS maintains a |
| planes plus some all terrain vehicles. | | | | particle list of those organizations that have tax |
| - The percentage you can claim. Since you are only | | | | exempt status. Go to the IRS website and search |
| able to claim up to 50% of your current gross yearly | | | | for Publication 78, Cumulative List of Organizations. |
| income you are limited if you are donating a vehicle | | | | This will be your best place to start for determining |
| such as a plane that can be worth thousands or tens | | | | which charities you can donate to and receive a tax |
| of thousands of dollars. | | | | write off. |
| - For contributions between $250 and $500 there is | | | | By following the guidelines provided by the IRS and |
| less information required to deduct the donation. The | | | | the charity you choose to donate to you can help |
| acknowledgement form from the charity will have to | | | | out those organizations in need plus you are able to |
| contain the following.o Name of the charityo Vehicle | | | | help yourself out with a tax deductible donation. Just |
| Descriptiono Plus one of the following | | | | remember to follow the rules and both parties |
| - A statement saying you never received any goods | | | | involved will win. |