We at Donate A Car 2 Charity hope you were able to get your 2007 taxes filed on time (April 17th). If you are planning to claim a deduction for the 2008 fiscal year on a vehicle or boat you are planning to donate, you must donate the vehicle/boat before midnight December 31st 2008. But don’t wait till the last minute to get information about donating your car. Feel free to call and talk to one of our live operators at 877-505-5775 to find out all you need to know about donating your vehicle or boat.
Here are a few important points to remember about claiming a tax deduction when you donate a car, boat or RV.
In order to benefit from the tax write-off for a vehicle donation, you must itemize your deductions.
You will be able to claim a deduction for the value of your vehicle up to $500 with a simple receipt from the charity you donate the vehicle to stating that the vehicle was donated.
If your donated car sells for more than $500, then you will receive a second receipt from the car donation charity with the sale value of your vehicle. The charity must provide this receipt with 30 days of the sale of your vehicle. You can claim the full sale value of your car donation. No charity can predict what a vehicle will sell for at the time of auction -- but they can often give you a ball-park idea of what to expect. There are no guarantees, though, for what any particular vehicle will sell for when it goes on sale on the auction lot -- but generally newer vehicles (within 7 years of age), luxury cars, SUVs and pickup trucks will bring a good price at auction, even if the vehicle has been in an accident.
If the charity you donate the vehicle to will use the car you donate for their charitable purposes, or if they sell it at a reduced price to a low income family, or if the charity makes significant repair before selling the vehicle, then you can claim the Fair Market Value of your vehicle as a tax deduction. If the FMV is over $5000 you will need to get an appraisal of your vehicle and fill out the 8283 IRS form, which must be signed by the appraiser and the charity that receives the donation.
Remember that if you call a car donation charity before midnight on December 31st of 2005 then you will still be able to claim your tax deduction for the 2005 tax year, even if it takes a week or two to pick up the car and get it sold. The date you call and pledge your donation is the date that counts as being the date you donated your car.
Thank you for considering a car donation to charity! -- You can make a difference in someone's life!
Remember that there are only two months remaining in the 2005 tax year and if you have a vehicle that you haven't been able to sell, or that needs repair and you haven't gotten fixed yet, then now is the time to think about donating your car to charity. All car donations that are pledged by midnight, December 31st will count as a 2005 tax deduction. How much will you be able to declare for your tax write off? Well that depends on whether your donated vehicle is sold by the charity, or if it is used for the charitable purpose of the organization. If the car donation is sold at auction or sold for parts, then you can claim as a deduction the sale value of the vehicle. If the vehicle is used for the charity's nonprofit purpose, then you can claim the fair market value of your car donation. So think about donating your car today! -- and give us a call so we can arrange pickup of your vehicle.
There has been some substantial changes in the IRS requirements for those who make car donations to claim the Fair Market Value of the vehicle. Just to recap these changes:
As of January 1st, 2005 those who make a charitable vehicle donation which is subsequently sold by the charity can claim what the charity receives when selling the donated vehicle. If the sale value of the vehicle is more than $500 then the car donation charity must provide a sales receipt to the donor for their tax deduction.
However, there are some exceptions to this rule which make it possible for you to claim the Fair Market Value of your car donation:
1. If the charity does not sell the car but keeps it for use in their charitable purpose. In other words, if the charity receives a donated truck, van or car and this vehicle is retained by the charity and used for their programs or services, then the donor can claim the Fair Market Value of the vehicle.
2. If the charity makes substantial repairs to the vehicle before selling it -- again, in this case the donor would be able to claim the Fair Market Value.
3. If the car is sold at a discounted price to a low income family or individual. Your vehicle may qualify for a full fair market value tax deduction, especially if it is in sound mechanical condition, or if the repairs that are required to bring the vehicle to running condition do not exceed the value of the car.
If you have any questions about what you can claim for your car donation -- give us a call & ask. We\'d be happy to explain your options. 1 (877) 505-5775
The JOBS bill (HR 4520) which was signed into law in October 2004 places new restrictions on car donations to charity that you should be aware of if you would like to claim a tax deduction for your car donation. Here are some helpful links that explain the new legislation.
IRS Publication on Car Donation tax laws
Helpful Info on 2005 Car Donation Tax Law changes
