Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

What You Can Get by Giving: Car Donations and Tax Cuts

By Lisa Otto Subscribe to RSS | June 6th 2012 | Views:
loading
 
  



When you donate a car to charitable and other not-for-profit organizations, you get several benefits: happiness, a warm feeling that spreads all over your body, and a tax deduction from the IRS. The first two benefits are a bit unquantifiable, but it is important to understand the third one, as your taxes can get way more complicated if you have no idea what’s going on.

People donate cars for two non-altruistic reasons: it is an admirable and eco-friendly way to dispose of old cars and it is a good way to get deductions on your taxes. The Internal Revenue Service (IRS) classifies car donations to recognized charities and not-for-profit organizations as tax-deductible. Doing this is a good way to get tax write-offs, but you need to know what to expect and what to do in order to make sure that your donation is recognized by the IRS. To do this, you need to know about the processes involved.

The first thing you need to understand when donating a car is that not all donations are considered tax-deductible. Donating a car to a friend is very altruistic of you, but it isn’t deductible, nor is donating to politicians, chambers of commerce, country clubs, or communist groups. The car has to go to an IRS-recognized institution such as a religious group, a veterans’ group, or a literary organization.

To claim a specific price range for your deduction, you need to determine the fair market value of your car through price guides like the Kelley Blue Book or Edmunds. If there are problems, or if your car needs repairs, you need to adjust the value accordingly. This can get a little tricky, so communicate with your chosen charity or with the IRS for clarification.

There are three basic documents you’re going to get when you donate your car MN tax authorities would ask for. One would be a receipt from the charity and, if the deduction you’re asking for is above $250, a written acknowledgement from the organization. If it is above $500, the IRS would need a record of how you acquired the vehicle.

Some programs to donate car Minnesota charities have offer benefits like tickets to donors’ banquets, and you have to deduct these from the write-off that you’re asking for. Also, you can’t claim a deduction that is more than 50% your income. Don’t be afraid to talk to the IRS or to your chosen charity for clarifications.

Tax cuts that come with programs to donate car MN charities have isn’t the point of giving your car—it’s being able to help. For more information, you can visit irs.gov/publications/p561/index.html or bankrate.com/finance/money-guides/donating-a-vehicle-to-charity-1.aspx.

Lisa Otto - About Author:
For more details, search donate your car MN, donate car Minnesota and donate car MN in Google for related information.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/auto-articles/what-you-can-get-by-giving-car-donations-and-tax-cuts.htm

Related Auto Articles Subscribe to RSS

Tips on How to Negotiate Successfully with Sacramento Used Car Dealerships
Published by Robinn Atherton on August 24th 2012 | Auto
Even though you have not purchased used cars before but still you can manage to negotiate successful...
 
The Hero Motocorp Passion Xpro is the new generation bike
Published by Wilson Roy on August 24th 2012 | Auto
The Hero Motocorp Passion Xpro is the new generation bike from Hero. They are already known for prod...
 
The Hero Motocorp Passion Xpro is the new generation bike
Published by Wilson Roy on August 24th 2012 | Auto
The Hero Motocorp Passion Xpro is the new generation bike from Hero. They are already known for prod...
 
Yamaha YZF 250 R4 - appealing looks and great functionality
Published by Wilson Roy on August 24th 2012 | Auto
Yamaha is the most popular company known for producing classic bikes. This time the company is manuf...
 
Yamaha YZF 250 R4 - appealing looks and great functionality
Published by Wilson Roy on August 24th 2012 | Auto
Yamaha is the most popular company known for producing classic bikes. This time the company is manuf...
 
Leading Used Car Showroom in Coimbatore
Published by Hema on August 23rd 2012 | Auto
The showroom has been known for its architectural beauty and is one iconic showroom in town designed...