Getting a tax rebate for donating a car to charity
If one is interested in tax rebates, and has decided “I want to donate my car”, then there are certain things that need to be followed while donating the car. When you are going to donate the car to charity by making use of a middleman, the middlemen will collect some percentage of the car price as processing fees from the charity organization and the car owner, but can expedite the process. Many charities prefer this as they do not have to deal with the legal processes. An individual can search on various online web portals of organizations such as Better Business to find charity organizations that are available to donate to and their track record. In addition to the BBB, another dependable source is the charity navigator. After zeroing on a particular charity organization, the car owner should immediately cross-check whether this organization is on the approved IRS list. This can be done at the IRS website by searching for the list of authorized non-profit organizations as deemed by the IRS. If the IRS does not approve the charity organization, then the car donation cannot be claimed as a tax deduction. Once the person has decided on a charitable organization after considering all the details mentioned above, then they have to get to get a receipt from the charity organization regarding the approximate value of the car and the amount the charity organizations will get after they sell the car. If the donation value is less than $500, then there is no need to attach any receipt while claiming tax deduction. If the car value is more than $500, then the car owner needs to have a receipt when claiming for a tax deduction with the IRS. When applying for the tax deduction, the car donator has to fill in the IRS Form 8283 and submit it along with the receipt received from the charity organization. If the receipt is not attached, the IRS will reject the tax deduction claim. Also this receipt is not required if the charity organization decides to keep the car for their own personal use. Thus if the owner has decided “I will donate my car to charity”, he/she should follow the above steps to get the maximum benefit. |



