Posted by Duce Taxes & Accounting

Thinking About A Vehicle Donation?

Thinking About A Vehicle Donation?

There are benefits attached to the charity organizations who intake the vehicle donations. If you think that you are just donating and it would not add any difference to their organization then you are living in misconception. 

The cars which get donated are used by the charity organization itself or they make the deal with raising funds over it. The funds would be used obviously at the charity organization activities but there is no pressure to use the vehicle only. The dealers are not willing to pay much for the donated vehicles yet, it can be up to $100 or as less till $30 for a car. 

Tips for Vehicle Donations

You can check out some of the tips which can be helpful for the vehicle donations so that you do not have to face any hassle. There are tax deductions over the donor for donating vehicle. It stays limited with the price if the charity organization plans to sell the car later on. 

You have to make sure that the vehicles are given to the right source. It needs to be used only for the purpose of charity and nothing else. The person who is need should be able to get the vehicle otherwise the deductions of taxes are not up to the maximum. When the vehicle which you donate tends to get sold then there is no participation from your side regarding it. 

Direct Contact

Make sure you contact the charity organization yourself and ask them if they support the vehicle donations. There should be no third party involved in the process. If you wish to take advice from a tax preparer regarding the tax deductions then you can surely do so. 

But when it is about donating the vehicle then you need to do all the work yourself. If it is possible for you then it is better that you donate the car yourself to the organization rather than using any towing services. You can keep the donations with you and you will be satisfied that everything has gone right when you do it yourself. 

Get Receipt

Always prefer to get the receipt for the donations. Many people think that you do not want a proof for the donation but this proof is necessary. It helps you during the taxes so that you are able to register it with the proof. Sometimes, people also make up the donations and when asked for the proof, they make up stories. So it is always better to be on the safe side and provide the proofs. 

Copy of Records

Keep the records copy with you. Even if you have to give the original papers of the vehicle to the organization, make sure that you keep the file of the copies. The tax exemption needs to be there with the IRS letter so that you can make the contributions of tax deductibles on hand. When you make the donations which are non-cash, it is necessary that you keep the record of it. If there are any complications on the end of the charity organization then the IRS would be contacting you to attain the information. So for reference, you have to keep the records. It works as the support system for yourself to keep you safe from any problem. 

Vehicle Cost 

When the cost of vehicle which you are donating costs more than $500 then it is better that you get the form filled. There is a specific form for it numbered as 8283. You can download the form from the main website and fill it duly to get the deductions over the donation. 

You have to pay the value of the car to the charity organization and it can be a great decision for you. Make sure that you are aware of all the rules and regulations before you make the donations. It is better to verify the information from the tax preparer or directly from the charity organization. You have to provide the certifications which can help you get out any penalties which you can face in the future. 

Stay out of the fraudulent activities and make sure that you do the necessary work which needs to be done with identifying the best condition of your vehicle. 

Duce Taxes & Accounting