Automobile donation is a very generous decision to be made as your old vehicle donation can greatly help someone in very much need. Apart from that, donate car tax write off is another bright aspect of automobile donation. But you need to be cautious while making an automobile donation as what happens to the car, after donating car to charity, is very important to the Internal Revenue Service (IRS)
If you have made your mind to donate auto to charity then you are one among the “small numbered” generous people who are making this big charity while others are still running after money and worldly pleasures like anything. Automobile donation is a very generous decision to be made as your old vehicle donation can greatly help someone in very much need. Apart from that, donate car tax write off is another bright aspect of automobile donation.
But you need to be cautious, when making automobile donation. What happens to the car, after donating car to charity, is very important to the Internal Revenue Service (IRS). The IRS is attempting to get as accurate a figure as possible representing the benefit of your automobile donation to the charity. There is a well set up value system, with these following rules, to arrive at the value of your contribution.
i) Up to $500: A vehicle donor can claim a charitable contribution deduction up to $500 of the vehicle's value, regardless of what the charity does with the vehicle.
ii) Over $500 but below $ 5000: The tax deduction claimed must match the sale price the charity received when they put the car up for sale, or the fair market value if the vehicle is used to further the charity's programs.
iii) Over $5000: In the case of the sale of the vehicle by the charity, the sale price is all the documentation you need to claim a deduction of over $5000, in the case of the vehicle being put into use by the charity you will need to obtain an independent appraisal to substantiate your claimed value.
Basically this could be a little bit surprising to someone considering automobile donation for the first time. However, there is no need to worry. At our automobile donation blog http://Automobile2Donation.blogspot.com we've been handling vehicle donations just like yours for over 4 years. If you need more details regarding your particular donation just enter your search term in the o box and get complete knowledge before you take any step. You can also browse our site where we've posted a wealth of information about how to donate auto to charity and the most common IRS questions and tax form issues.
