Friday, May 25, 2012
Car Donations - Tip #4
A car donation can supply transportation for a needy individual and cash for charity so monies can help the community. Buying a car for some is standard procedure in the course of running a home and family. However, for others getting reliable transportation may be very difficult. Some people do not have the economic means to purchase cars. Car donation services are organizations that exist to help make the gift of car donation easier for everyone. These services typically handle all necessary paperwork, transportation of the donated car, and assess or even repair the car to provide a better value to the recipient – whether an individual or charitable organization.
Any time you donate non-monetary assets, there is paperwork. This is absolutely the case if you expect to receive a tax deduction. For the best outcome, remember to be wise and keep clear, concise records. A car donation service will find any forms you need to get things moving. Before making any car donation a clear title must be in possession of the owner. Additionally, this information must be verified by the DMV before you can finalize the donation process. In most cases, the condition of the car is not as important for car donation. These companies simply want to help you donate cars to a selected charity while benefiting from an excellent tax deduction.
Before finalizing your car donation, you will want to check with the IRS to ensure you will be making the donation to an IRS-approved charity. If you do not, you will run the risk of not receiving the tax deduction you’re hoping for. Any kind of documentation you have on any item you donate is always an asset and most car donation companies make sure you get the necessary paperwork for a car donation so your tax deduction is applicable. This is especially true with a vehicle.
Cars with a price tag worth of $500 to $2000 use the form 8283, when, and if, a charity decides to use a donated vehicle. You should get a statement in writing with an assessed value and other details of its use within a 30-day period. If the car donation is sold, this same application applies. If the car happens to be worth more than the above amounts outside estimates are necessary, and section B of the 8283 must be completed. This certainly sounds like fun, but why not have someone else do all of this work for you. All you need to be concerned about is giving to the charity you love.