Common Questions that are asked about Car Truck and RV donations
if the car works it can be sold for more you will get the full value.
For example: You have a 1995 Gold Toyota that sells at auction for $2000
Result: You'd take the $2000 write off for it
You have a 2004 Ford Van that sells at auction for $5000
Result: You'd take the write off for $5000
INTERNAL REVENUE SERVICE Car Tax Facts
1. What about the INTERNAL REVENUE SERVICE?
A car donation to non-profit organization will be a deduction on your gross taxable income. There is a new tax law that went into effect January 1 2005, the INTERNAL REVENUE SERVICE has taken the guesswork out of determining the value of your car, truck, RV, boat or other automobile, car, truck, motorcycle, RV. They have a new form 1098 just for donating cars. We will send you one when you donate if your vehicle sells for over $500.
2. When did this happen?
As of January 1 2005, you can take a deduction for the full price received on the sale of your car or other automobile, car, truck, motorcycle, RV. The process is simple for the donor, because you no longer have to research on nada guides or Kelly blue book and come up with an estimate of the fair market value of the car or other automobile, car, truck, motorcycle, and RV.
3. Is their any risk of audit?
No risk. This removes you getting into trouble by overstating the value of your deduction. The amount will be 100% accurate. You'll know exactly the amount you may deduct, No guesswork. This is a faster process for you.
4. Does the INTERNAL REVENUE SERVICE allows me the taxpayer, to claim a tax deduction of automobile, car, truck, motorcycle, RV $500 on each automobile, car, truck, motorcycle, RV?
Yes certainly, but …If the automobile, car, truck, motorcycle, RV sells for more than $500, you will be notified with the exact amount for which it sold, that which is the value you state for your tax purposes.
5. What about Fair market value?
Only for certain automobile, car, truck, motorcycle, RVs. If your late model cars or vans that end up being used to further the work of our non-profit organization or we take your automobile, car, truck, motorcycle, RVs and make a substantial improvement on it. Exterior interior.
6 What about my online paper receipt for my donation?
You can get your online paper receipt for my donation on line. We also have a secure online paper receipt for my donation for INTERNAL REVENUE SERVICE which you can add your SSN number to. Your online paper receipt for my donation is not valid if you don't go through with the donation.
7. How do I get a hold of the Internal Revenue Service to find out more?
INTERNAL REVENUE SERVICE provides &ldquoA Donor's Guide to Car Donations,” which states the rules, the INTERNAL REVENUE SERVICE requires you to determine the value of your donated property.
8. Can I phone and ask more questions?
Yes certainly! Please feel free to contact our phone operators at 1-800-227 2643 with any and all questions you may have.
9. Is the INTERNAL REVENUE SERVICE publication free?
Yes certainly. We encourage you to order the latest official INTERNAL REVENUE SERVICE Facts on automobile, car, truck, motorcycle, RV donations, released in June 2004 -- Publication 4303, ‘A Donor's Guide to Car Donation'’ Included is some of the most relevant Facts below:
10. What tax form or document do I need?
Go to http://www.IRS.gov for free online forms. If you claim a deduction on your return of over $500 for all contributed property, you must attach a Form 8283 (PDF), Noncash Charitable Contributions
11. What about if my deduction is over $5000. My car is new?
If you claim a total deduction of $5,000 or less for all contributed property, you need only complete Section A of Form 8283. If you claim a deduction of more than $5,000 for an item or group of similar items, you need to complete Section B of Form 8283, which requires a qualified appraisal by a qualified appraiser.
12. Do I need to keep my online paper receipt for my donation?
Yes, Certainly! You will need to obtain and keep evidence of your car donation and be able to substantiate the fair market value of the car.
13. How do I download the INTERNAL REVENUE SERVICE forms?
Start with INTERNAL REVENUE SERVICE Form 526: Get Adobe Acrobat reader.
"This publication explains how to claim a deduction for your charitable contributions. It discusses organizations that are qualified to receive deductible charitable contributions, the types of contributions you can deduct, how much you can deduct, what records to keep, and how to report charitable contributions.
“A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.
“Qualified organizations. Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. You will find descriptions of these organizations under Organizations That Qualify To Receive Deductible Contributions.
“Form 1040 required. To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. The amount of your deduction may be limited if certain rules and limits explained in this publication apply to you.”
INTERNAL REVENUE SERVICE Tax form or document Form 8283