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