Donate A Cars For Charity
Car donations to charities seem like a win-win proposition. A donor gets a hassle-free way of disposing of an old car and a fat tax deduction, a charity gets money that it would not otherwise receive through cash contributions and a middleman makes a tidy profit for soliciting, towing and selling the car. Unfortunately, the loser is the rest of us. As taxpayers, we are subsidizing tax deductions on car donations that are not anywhere near commensurate with the benefits received by charity.
Choose for charity for donation ;
1. ACC Senior Services (formerly known as The Asian Community Center of Sacramento Valley) is dedicated to enriching the lives of seniors and caregivers.
3. AIDS Research Alliance of America exists to develop a cure for HIV/AIDS, medical strategies to prevent new infections, and better treatments for people living with HIV.
4. The Alzheimer’s Association Colorado Chapter is the premier source of information and support for the more than 60,000 people living with Alzheimer’s in Colorado, their families and caregivers.
Don’t Forget The Tax Deductions!
In the case than an individual is eligible to deduct charitable donations for federal income tax purposes, there are steps that must be taken. Only if the charity receiving the vehicle is a qualified organization, can this happen. Charitable, religious, and educational organizations usually qualify.
To verify a charity organization, simply call the account services division of the IRS and see if it has tax exemption status. If an organization is located at a church, synagogue, temple, or mosque, it is not required to apply for exemption.
Some charity only allows for limited tax deductions. Your tax deduction cannot exceed 50 percent of your adjusted gross income and other limitations may apply as well. You can research a specific type of charity contribution and learn how it will affect your taxes. Generally though, the largest amount of money you can deduct from your income tax return is simply the fair value of your automobile – whatever price a person would buy it for.
It is important to take care of the vehicle’s records, as they may be required to authenticate your donation. Furthermore, if you plan to deduct more than $250, you should ask for a written acknowledgment from the charity about the donation. The document should feature the name of the charity, a description of the automobile, a statement that clarifies that no goods or services, beyond religious guidance or instruction, were exchanged for the automobile.
You must obtain this written acknowledgment on or before the due date of your return; the same year you donated the vehicle. It can be a paper copy or a mere e-mail.
As for charities, they must be available for public inspection so as to secure their tax exemption status. As well, they must provide documents that show their annual returns.