Car Donation Programs http://www.nycardonation.com NY Car Donation | Donate Your Car | Car Donation Services Wed, 27 Feb 2008 04:15:16 +0000 http://wordpress.org/?v=2.5.1 en Determining Your Tax Deduction from an Auto Donation http://www.nycardonation.com/determining-your-tax-deduction-from-an-auto-donation.html http://www.nycardonation.com/determining-your-tax-deduction-from-an-auto-donation.html#comments Sat, 02 Feb 2008 06:33:09 +0000 admin http://www.nycardonation.com/determining-your-tax-deduction-from-an-auto-donation.html Your tax deduction depends on how a charity uses your vehicle. Typically, the allowable deduction is limited to the amount of the car’s sale. Charities will be required to provide written notification of the sale amount within 30 days. If you do not receive the acknowledgement from the charity, you will not be able to deduct the donation.
However, if the charity uses the vehicle as part of its programs, you can still deduct the fair market value. Fair market value (FMV) is the price for which the property would sell on the open market – this is not the “blue book” value. You need to take into account your car’s physical condition, mileage, and features, as well as the area used-car market.

The best method for determining the FMV is paying for a written appraisal from an independent, qualified appraiser prior to donating the car. This is mandatory if vehicle value is above $5,000. Even if the charity or its intermediary helps you, place a value on your contribution; your tax deduction is between you and the IRS, if you are audited you will need to prove the deduction was legitimate.

If the total deduction for your non-cash contributions is more than $500, you must fill out and file Section A of IRS Form 8283 (Non-cash Charitable Deductions). If the FMV of the donated property is more than $5,000, you must also fill out Section B (the required appraisal). For more information, check out IRS Publications 561 (Determining the Value of Donated Property) and 526 (Charitable Contributions) available on-line at www.irs.gov/formspubs/index.html.

]]> http://www.nycardonation.com/determining-your-tax-deduction-from-an-auto-donation.html/feed Car Donation 2007 Tax Tip http://www.nycardonation.com/car-donation-2007-tax-tip.html http://www.nycardonation.com/car-donation-2007-tax-tip.html#comments Mon, 19 Nov 2007 16:30:21 +0000 admin http://www.nycardonation.com/car-donation-2007-tax-tip.html If you donated a car or other vehicle to a qualified charitable organization in 2006 and intend to claim a deduction you should review the special rules that apply to vehicle donations. You can deduct contributions to a charity only if you itemize deductions on Schedule A of Form 1040.

Generally, the amount you may deduct for a vehicle contribution depends upon what the charity does with the vehicle. Charities typically sell donated vehicles. If the vehicle is sold by the charitable organization, the deduction claimed by the donor usually may not exceed the gross proceeds from the sale.

If your deduction is $250 or more you must obtain written acknowledgement of the donation from the charity. If your deduction is more than $500, this written acknowledgment or Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, must be attached to your return. Among other things, the acknowledgment generally must include the gross proceeds of the sale, the vehicle identification number, and a statement certifying the vehicle was sold in an arm’s length transaction between unrelated parties.

If the organization intends to make significant intervening use of the vehicle or material improvements to the vehicle, the acknowledgment must include certain certifications. If the organization intends to sell the vehicle to a needy individual at a price significantly below fair market value, or gratuitously transfers the vehicle to a needy individual, the acknowledgment must also include certain certifications.

In addition, for deductions greater than $500, Form 8283, Noncash Charitable Contributions, must be attached to the return.

You can generally deduct the vehicle’s fair market value, if:

*The organization makes significant intervening use of or materially improves the vehicle

*The organization gives or sells the vehicle to a needy individual at a price significantly below fair market value in direct furtherance of its charitable purpose of relieving the poor and distressed or underprivileged who are in need of a means of transportation

*The claimed deduction is $500 or less

The fair market value cannot exceed the private party sales price listed in a used vehicle pricing guide.

For more information see Publication 526, Charitable Contributions.

Source: IRS.gov

]]> http://www.nycardonation.com/car-donation-2007-tax-tip.html/feed Car Donation News and Programs http://www.nycardonation.com/car-donation-news-and-programs.html http://www.nycardonation.com/car-donation-news-and-programs.html#comments Fri, 26 Oct 2007 16:37:02 +0000 admin http://www.nycardonation.com/2007/10/26/car-donation-news-and-programs/ In the US it’s possible to donate a vehicle (usually a car, but it can also be a truck, boat, RV or any other kind of transportation) to certain charities, and in return you would be able to claim a tax deduction on your income tax return. If the car donation is accepted, the charity takes care of any towing expenses and provides you with the necessary documents for tax purposes. If a charity does not provide concise answers about where the proceeds from donations will go, you might want to consider making your car donation to another charity.

If you don’t plan to deduct the vehicle donation on your tax return, no further action by you is necessary. By donating a car, you can eliminate spending money on unnecessary repairs, advertising fees and the problems or liabilities associated whenever you sell a vehicle. Some charities even have the ability to repair or perform maintenance and prepare a donated vehicle for sale.

Best of all, by not selling the car yourself, you don’t have to worry about total strangers calling you to get information and find out where you live, or coming to your house to see the car, truck or other vehicle. Make sure you have the vehicle title and keep it handy.

Although some states require smog certificates and/or safety inspection certificates, you can still donate your vehicle without these certificates. You used to be able to deduct the fair market value of the vehicle at the time of the deduction, but not any more. Some car donors, who are in need of a new vehicle themselves, even buy recently donated and repaired vehicles. You may also donate your car online to a number of individual charities or car donation programs.  Also, if your car is still running, consider dropping it off with the charity yourself to save the organization from paying for any towing costs.

As the donor you benefit from the donation by receiving a tax receipt for the highest possible value for the vehicle. Also your vehicle must have all four of its tires inflated to be accepted and must not have any major parts missing.

If your vehicle is no longer of use to you, it can still go a long way towards supporting a charity of your choice. Repairable vehicles are accepted provided they are repairable for less than what it could sell for. The charities can then donate the vehicle to the eventual recipient directly or sell the vehicle, and the money is then given away as of the charity function.

One of the exceptions to the new IRS regulations allows donors to still deduct the fair market value of their vehicle, provided that the charity materially improves the vehicle. Normally in wear and tear, minor repairs and breakdowns, an average vehicle owner might spend more than $4000 per year on their vehicle. And some charity car donations may not qualify for a tax exemption because of the vehicle condition.

There are a few exceptions in the new tax law regarding the fair market value section. One is, you may base your deduction on the vehicle’s fair market value if the charity sells it to a needy individual at a discounted price or if the charity uses the car as part of its mission rather than selling it to another. If you have an unused vehicle just sitting around,  you can receive a car donation tax deduction up to the limits allowed by the IRS.

If you think that donating an old vehicle is a good way to ease your taxes you should check into it today. Major charity car donation programs include: the Salvation Army Car Donation Program and the Easter Seals Vehicle Donation Program.

]]> http://www.nycardonation.com/car-donation-news-and-programs.html/feed Car Donation - What is it? http://www.nycardonation.com/car-donation.html http://www.nycardonation.com/car-donation.html#comments Tue, 28 Aug 2007 14:49:45 +0000 admin http://www.nycardonation.com/2007/08/28/car-donation/ Car donation is the practice of giving away used automobiles to charity organizations. In the U.S., charitable donations provide a tax benefit.  For values less than $500, the value of the tax deduction comes from the donor’s own estimate of the car’s value, even if the charity receives less money from actually selling the car. Deductions for donations over this amount are limited to the sale amount of the vehicle (usually at an auction).  Some critics have claimed that this is essentially a tax shelter.  However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread in the U.S.

]]> http://www.nycardonation.com/car-donation.html/feed Car Donation IRS Guide http://www.nycardonation.com/a-donors-guide-to-car-donation.html http://www.nycardonation.com/a-donors-guide-to-car-donation.html#comments Mon, 13 Aug 2007 16:40:44 +0000 admin http://www.nycardonation.com/2007/08/13/a-donors-guide-to-car-donation/ Before you donate your car to a charitable organization, you should do the following:

1 - Check out the charity

2 - See if you’ll get a tax benefit

3 - Check the value of your car

4 - See what your responsibilities are as a donor to charity

 For more Car Donation and Tax Deduction info see the IRS Guide to Car Donation. 

]]> http://www.nycardonation.com/a-donors-guide-to-car-donation.html/feed IRS Rules Regarding Car Donations http://www.nycardonation.com/irs-rules-regarding-car-donations.html http://www.nycardonation.com/irs-rules-regarding-car-donations.html#comments Mon, 13 Aug 2007 16:14:11 +0000 admin http://www.nycardonation.com/2007/08/13/irs-rules-regarding-car-donations/ If you donated a car or other vehicle to a qualified charitable organization in 2006 and intend to claim a car donation tax deduction you should review the special rules that apply to vehicle donations. You can deduct contributions to a charity only if you itemize deductions on Schedule A of Form 1040.

Generally, the amount you may deduct for a vehicle contribution depends upon what the charity does with the vehicle. Charities typically sell donated vehicles. If the vehicle is sold by the charitable organization, the deduction claimed by the donor usually may not exceed the gross proceeds from the sale. 

If your deduction is $250 or more you must obtain written acknowledgement of the donation from the charity.  If your deduction is more than $500, this written acknowledgment or Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, must be attached to your return. Among other things, the acknowledgment generally must include the gross proceeds of the sale, the vehicle identification number, and a statement certifying the vehicle was sold in an arm’s length transaction between unrelated parties.

If the organization intends to make significant intervening use of the vehicle or material improvements to the vehicle, the acknowledgment must include certain certifications. If the organization intends to sell the vehicle to a needy individual at a price significantly below fair market value, or gratuitously transfers the vehicle to a needy individual, the acknowledgment must also include certain certifications.

In addition, for deductions greater than $500, Form 8283, Noncash Charitable Contributions, must be attached to the return.

You can generally deduct the vehicle’s fair market value, if:

  • The organization makes significant intervening use of or materially improves the vehicle
  • The organization gives or sells the vehicle to a needy individual at a price significantly below fair market value in direct furtherance of its charitable purpose of relieving the poor and distressed or underprivileged who are in need of a means of transportation
  • The claimed deduction is $500 or less

The fair market value cannot exceed the private party sales price listed in a used vehicle pricing guide.

For more information see Publication 526, Charitable Contributions, Publication 561, Determining the Value of Donated Property, and Publication 4303, A Donor’s Guide to Car Donations, available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

IRS Tax Tip

]]> http://www.nycardonation.com/irs-rules-regarding-car-donations.html/feed What does Car Donation provide? http://www.nycardonation.com/what-does-car-donation-provide.html http://www.nycardonation.com/what-does-car-donation-provide.html#comments Fri, 10 Aug 2007 00:40:06 +0000 admin http://www.nycardonation.com/?p=7 Car donation provides an organization the required funds for its humanitarian activities worldwide. Underprivileged, victims of natural calamities and sick persons facing financial hardships get aid from this scheme during their hour of need. In other words, you must agree that car donation brings light of hope in the life of many people who otherwise would have been in worse condition.

]]> http://www.nycardonation.com/what-does-car-donation-provide.html/feed What benefits are in Car Donation? http://www.nycardonation.com/what-benefits-are-in-car-donation.html http://www.nycardonation.com/what-benefits-are-in-car-donation.html#comments Mon, 09 Jul 2007 23:22:00 +0000 admin http://www.nycardonation.com/?p=6 Car donation gives certain benefits to the person donating his/her vehicle, like car donation tax deduction. You need not to go through various procedures which otherwise you have to face if you sell the car in the market. Problem of towing the used car -which would have turned into junk, is solved automatically. You also get satisfaction of helping someone in need.

]]> http://www.nycardonation.com/what-benefits-are-in-car-donation.html/feed What happens after your car is donated? http://www.nycardonation.com/what-happens-after-your-car-is-donated.html http://www.nycardonation.com/what-happens-after-your-car-is-donated.html#comments Fri, 08 Jun 2007 23:20:20 +0000 admin http://www.nycardonation.com/?p=5 Once the vehicle is received by the organization, it may carry out material improvement. It may give it to the professional auctioneer to sell it. By giving it to auctioneer, the organization can secure more proceeds than that of market value. It is the responsibility of the organization to give you details of such, and must sell it within 30 days.

To avoid misuse of this car donation scheme, certain rules are framed which are binding to the organization receiving the car donation. Organizations must submit a written acknowledgement of the receipt of donated vehicle. The receipt must contain name of donor, make and identification number of the vehicle, date of sell, details of proceeds to the donor.

]]> http://www.nycardonation.com/what-happens-after-your-car-is-donated.html/feed How To Donate Your Car http://www.nycardonation.com/how-to-donate-your-car.html http://www.nycardonation.com/how-to-donate-your-car.html#comments Mon, 21 May 2007 22:43:12 +0000 admin http://www.nycardonation.com/?p=4 If you have decided to donate a car you must examine whether you fulfill the following conditions:1 - You should have the clear title of the car.

2 - The car you wish to donate should be in running condition.  You can donate any vehicle irrespective of its make, model and other condition.

After you are sure that your car is in good condition for donation, you can start your search for the possible organizations of your preference. You can look for such organizations or charity groups either in local media or on the internet. After you find the right organization you have to contact the organization. Your car will be inspected by the representative of the organization and he/she will discuss with  you an acceptance of offer.

Once your car is accepted for donation, the organization arranges for its towing. You need not to run around for completing documentary activities like obtaining various certificates from the motor vehicles department and other administrative formalities. The organization receiving the car donation will do all this for you.

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