automobile to charity
Navigation

Automotive Information

Below, you'll find extensive information, automobile to charity articles and products, hopefully to help you find what you need to know.

Donating An Automobile To Charity? Don’t Forget The Tax Deductions!
by: Daniel Richards

When donating an automobile to charity, you’ll want to think about tax deductions. According to Publication 4303, the Internal Revenue Service (IRS) and state charity officials provide general guidelines for donations.

In the case than an individual is eligible to deduct charitable donations for federal income tax purposes, there are steps that must be taken. Only if the charity receiving the vehicle is a qualified organization, can this happen. Charitable, religious, and educational organizations usually qualify.

To verify a charity organization, simply call the account services division of the IRS and see if it has tax exemption status. If an organization is located at a church, synagogue, temple, or mosque, it is not required to apply for exemption.

Some charity only allows for limited tax deductions. Your tax deduction cannot exceed 50 percent of your adjusted gross income and other limitations may apply as well. You can research a specific type of charity contribution and learn how it will affect your taxes. Generally though, the largest amount of money you can deduct from your income tax return is simply the fair value of your automobile – whatever price a person would buy it for.

It is important to take care of the vehicle’s records, as they may be required to authenticate your donation. Furthermore, if you plan to deduct more than $250, you should ask for a written acknowledgment from the charity about the donation. The document should feature the name of the charity, a description of the automobile, a statement that clarifies that no goods or services, beyond religious guidance or instruction, were exchanged for the automobile.

You must obtain this written acknowledgment on or before the due date of your return; the same year you donated the vehicle. It can be a paper copy or a mere e-mail.

As for charities, they must be available for public inspection so as to secure their tax exemption status. As well, they must provide documents that show their annual returns.

Article Source: http://www.article-matrix.com

Daniel Richards has an interest in Automobile related topics. To access more information on vehicle donation or on auto donation, please click on the links.

Best Penny Stocks To Buy - Sponsored Link
Ad - www.pennystockpickalert.com Jul 29 2010 8:24AM GMT
Eaton Corp. - Growth & Income
Quote.com France Jul 29 2010 8:24AM GMT
WRAPUP 1-Nissan, Hyundai profits soar; US, China seen slowing
Yahoo! Asia Jul 29 2010 8:24AM GMT
Nissan and Hyundai profits soar as U.S. and China seen slowing
Yahoo! Asia Jul 29 2010 8:24AM GMT
BorgWarner To Produce New Engine Timing Systems For FPT
Automotive Business Review Jul 29 2010 8:23AM GMT
Infineon: automotive MCU family for powertrain and chassis applications
ECE Jul 29 2010 8:22AM GMT
Nissan returns to profit on sales growth
CNBC Jul 29 2010 8:21AM GMT
Porsche Builds 25,000th Panamera Gran Turismo
Sys-Con Media Jul 29 2010 8:21AM GMT
Nissan and Hyundai profits soar as U.S. and China seen slowing
CNBC Jul 29 2010 8:21AM GMT
Nissan and Hyundai profits soar as U.S. and China seen slowing
Reuters Jul 29 2010 8:21AM GMT
Credit Suisse says Nissan to post solid sales growth for July outpacing Toyota, Honda
International Business Times Jul 29 2010 8:21AM GMT
Hyundai Q2 profit hits record on U.S., China demand
International Business Times Jul 29 2010 8:21AM GMT
Nissan Introduces Driving Assistance Technology To Detect Moving Objects
Automotive Business Review Jul 29 2010 8:20AM GMT
UBI ties up with Hyundai Motor
India Blooms Jul 29 2010 8:20AM GMT
Auto supplier NHK Spring to bring 224 jobs to Murfreesboro
Tennessean Jul 29 2010 8:18AM GMT
Nissan and Hyundai profits soar as U.S. and China seen slowing (Reuters)
Yahoo! News Jul 29 2010 8:16AM GMT
UPDATE 2-Hyundai sees demand sliding after record Q2
FOXBusiness.com Jul 29 2010 8:14AM GMT