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#Which charity should i donate my car to for free
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For more details, check out IRS Publication 4303, A Donor’s Guide to Vehicle Donations. Once the charity sells the car, it should send you Form 1098-C confirming the sale date and price. Most charities sell donated vehicles, and your deduction is typically limited to the proceeds received from the sale. The IRS has strict rules for documenting vehicle donations, so you’ll need to get the correct paperwork to claim your write-off. For many taxpayers, that’s a tough hurdle, so you might want to work with your tax advisor to crunch some numbers before you donate, just to see if itemizing will be worth it. Generally your total itemized deductions-including out-of-pocket medical expenses, home mortgage interest, state and local taxes and charitable deductions-need to be greater than the standard deduction available for your filing status. To get a tax benefit from donating your vehicle, you must itemize deductions. You must also complete Section A of Form 8283, Noncash Charitable Contributions and attach both the written acknowledgment and this form to your return.Before donating your car, it’s a good idea to read up on the IRS guidelines for charitable donations to be sure you qualify for the deduction you expect to claim. The charity may provide you a completed Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, which contains the same information, in lieu of the written statement. You must generally receive the written acknowledgment within 30 days of the sale of the car or, in certain circumstances, within 30 days of your donation, for the acknowledgment to be considered timely. If the charity sells the vehicle, the written acknowledgment must contain the date the car was sold by the charity, a certification that the charity sold the car in an arm’s length transaction between unrelated parties, the gross proceeds of the sale, and a statement that your deduction may not exceed the gross proceeds of the sale. Beyond the above items, what the written acknowledgment must contain depends on what the charity does with the vehicle.The vehicle identification number (VIN).Your name and taxpayer identification number (TIN).
#Which charity should i donate my car to plus
Instead, keep it with your records to substantiate your donation.Ģ) If the deduction you claim for the car is more than $500, the contemporaneous written acknowledgment from the charity must be timely, must be attached to your return, and must include all of the information listed in (1) above, plus the following additional information:
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