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If you've thought about donating your auto to a car charity, don't hesitate. Donating is easy. Along with the good feeling that comes from having done something good, you might also qualify for a nice tax break. More than ever, the process for giving your car to a charity is very simple. One thing you won't have to do is argue about the price. Car charities accept all kinds of motorized vehicles: trucks, vans, RVs, boats, trailers, planes and motorcycles. Many charities claim they can't meet the demand for good used cars. So, these car charities need your help. Most car charities fund their programs by selling donated vehicles at auctions. Again, the warm fuzzies aren't the only reason to donate; don't forget the tax deduction. The car charity should give you a receipt for you donation. The receipt should include the value of the vehicle, the name of the charity and the date of the donation. The IRS has gotten stricter with its documentation requirements, so you'll want to make sure you get a receipt. Unfortunately, you can't just take the Kelly Blue Book value for the car anymore. You have to wait until the charity sells your car. Then you can only deduct up to the amount of the sale. If you're just in it for the good feeling, the tax deduction is just a bonus anyway. But, not everyone can deduct their donated car. You have to be able to itemize your deductions. How do you figure out how much to deduct? If the car is $500 or less, you can deduct the whole thing. If the charity keeps the car and uses it for its own purposes, you can take the full market price as a tax deduction. If this happens, you can then use the value of your car found in the Kelley Blue Book. Did you remember the car's title? Don't forget it! You'll need it at the time of donation. Some car charities can work around it, but many need the title in order to accept your donation. So as you're driving your car to the charity, remember these three items: the title, the keys, and the paperwork. Giving to a car charity is easy. It's a lot easier than selling your car on your own or trading it in. You will make a positive effect on your community. And if you qualify, you may also receive a significant tax deduction.
Article Source: http://www.philvault.com
Chris Roberts writes for Car Buying Guide Online. Don't miss his articles on Car Auctions and Car Insurance.
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