I have an older car I would like to donate to a charity and get a tax receipt. Does anyone have experience with this? Any recommended charity?
TIA
TIA
Donating a car to charity
- Thread starter Bobsled
- Start date
RossMAN
Grand Nagus
- Feb 24, 2000
- 78,846
- 351
- 136
there's some billboards i saw in nj (turnpike) stating if you donate a car to an organization, you get a free vacation.
i hope it's true.
i hope it's true.
We donated a car a few years ago and we immediately claimed an amount between $2.5K and $3K without an official appraisal. IIRC, now you have to wait until the charity sells the car and then you can deduct that amount.
Cienja
Senior member
I donated a car 2 years ago. It was worth $700 and I claimed $700. Nice addition to my tax deductions (Donated to a breast cancer charity)
(Donated to a breast cancer charity)
DrPizza
Administrator Elite Member Goat Whisperer
I donated a Pathfinder a few years ago. Receipt said I was allowed to claim up to $3k or something like that. We were honest and put down $300, which is about all it was worth.
Just how bad a car can you donate and have it actually be worth it to the charity? I've got a car that's very close to needing a new engine...
Thanks for the information I'll look into it. And I wasn't looking to cheat, just looking for charity that can benefit from it and I can get a tax break that's all.
BoomerD
No Lifer
- Feb 26, 2006
- 65,014
- 13,319
- 146
http://www.irs.gov/newsroom/ar...e/0,,id=131660,00.html
IRS Officials Urge Care for Those Making a Car Donation; New Law Changes Rules at End of the Year
IR-2004-142, Nov. 30, 2004
WASHINGTON ? The Internal Revenue Service issued a consumer alert today to help taxpayers avoid potential pitfalls when they donate their automobiles to charities.
In addition, as taxpayers plan their charitable giving, donors should understand the way that the American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004.
Next year, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.
Under the new rules, the charitable organization must provide an acknowledgement to the donor within 30 days of the sale stating the amount of gross proceeds. Alternatively, if the charity significantly uses or materially improves the vehicles, the charity must certify this intended use and duration and provide an acknowledgement to the donor within 30 days of the contribution. If the charity significantly uses or materially improves the vehicle, generally, the donor may deduct the vehicle?s market value.
For the remainder of 2004, however, the new rules do not apply. Under the rules in effect for 2004, taxpayers will be able to deduct the fair market value of the contributed property.
?Just because the rules will be tightened for vehicles donated next year doesn?t mean anyone should give a car to charity and claim an inflated value this year,? said IRS Commissioner Mark W. Everson.
IRS officials recommend that people who want to donate their vehicle by Dec. 31, 2004, take the following steps:
Check That the Organization is Qualified ? Taxpayers should make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can use the IRS Web site to check that an organization is qualified by searching Publication 78. Publication 78 is an annual, cumulative list of most organizations that are qualified to receive deductible contributions. Publication 78 is also available in many public libraries. In addition, taxpayers can call IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization?s correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified. They frequently are not listed in Publication 78. Donations to these institutions are tax deductible.
Itemize in Order to Benefit ? Many taxpayers can?t take a deduction for car donations because they don?t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2004, the standard deduction will be $4,850 for single; $9,700 for married filing jointly). Slightly more than one-third of the 130 million individual taxpayers itemized in 2001, the last year for which complete data is available.
Calculate the Fair Market Value ? The donor must take many factors into consideration to establish the value of the car. Many used-car buying guides contain step-by-step instructions so that readers can make adjustments to the value of a car for accessories, mileage and other indicators of its general condition. Both Publication 526, Charitable Deductions, and Publication 561, ?Determining the Value of Donated Property,? provide detailed instructions.
Deduct Only the Car?s Fair Market Value ? Some car donation program operators have mistakenly claimed that donors can deduct the highest value listed in a used-car buyer?s guide for their make and model of car, regardless of the donated car's condition. The IRS, however, will only allow a deduction for the fair market value of the car. Fair market value takes into account many factors, including the vehicle?s condition. The fair market value of the taxpayer?s car may be substantially different than the highest value listed in a used-car buyer?s guide for that make and model of car.
Document the Charitable Contribution Deduction ? For vehicle donations, taxpayers must document the car donation and its fair market value. Recordkeeping requirements are comprehensive and vary depending on the amount of the contribution and the total amount of the charitable deduction. IRS Publication 526 details requirements for the types of receipts taxpayers must obtain and the forms they must file.
Contact State Charity and IRS Officials When in Doubt ? Donors with questions about whether a contribution is deductible should call the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059. They can also find IRS forms and publications at IRS.gov. Donors concerned that contributions are being solicited for fraudulent purposes should contact the appropriate state charity official, who is often located in the state attorney general's office. A list of state charity official offices can be found online.
AND:
http://www.irs.gov/irs/article/0,,id=152127,00.html
IRS Reminds Taxpayers About Requirement of Written Acknowledgment for Donated Cars
IR-2005-149, Dec. 22, 2005
WASHINGTON ? Internal Revenue Service officials today reminded taxpayers that they must obtain a charity?s written acknowledgment of their vehicle donation before they claim a deduction for the donation. For deductions of more than $500, the taxpayer is required to attach the acknowledgment to the taxpayer?s return for the year of the donation.
Effective for vehicles donated to charity on or after January 1, 2005, the American Jobs Creation Act of 2004 provides that, generally, a taxpayer?s deduction is limited to the gross proceeds from the sale of the vehicle by the charity. The charity must provide a written acknowledgment within 30 days after the vehicle is sold that notifies the taxpayer of the amount of the gross sales proceeds.
The IRS is aware that questions have arisen as to whether the charity must sell the vehicle in 2005 in order for the donor who donated a vehicle in 2005 to receive a deduction for 2005. The charity does not need to sell the vehicle in 2005. A taxpayer can take a charitable contribution deduction only for the year the vehicle is transferred to the charity, even if the vehicle is not sold by the charity until a later year. (Only taxpayers who itemize their deductions can take a charitable contribution deduction.)
However, a taxpayer cannot take a charitable contribution deduction of $500 or more for a vehicle donation unless the taxpayer has received a written acknowledgment of the donation from the charity and attached the acknowledgment to the return.
If the taxpayer receives the written acknowledgment after filing the tax return for the year of the donation, the taxpayer may, after receiving the acknowledgment, file an amended return for that year and claim the deduction on the amended return. The taxpayer must attach the acknowledgment to the amended return.
IRS Officials Urge Care for Those Making a Car Donation; New Law Changes Rules at End of the Year
IR-2004-142, Nov. 30, 2004
WASHINGTON ? The Internal Revenue Service issued a consumer alert today to help taxpayers avoid potential pitfalls when they donate their automobiles to charities.
In addition, as taxpayers plan their charitable giving, donors should understand the way that the American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004.
Next year, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.
Under the new rules, the charitable organization must provide an acknowledgement to the donor within 30 days of the sale stating the amount of gross proceeds. Alternatively, if the charity significantly uses or materially improves the vehicles, the charity must certify this intended use and duration and provide an acknowledgement to the donor within 30 days of the contribution. If the charity significantly uses or materially improves the vehicle, generally, the donor may deduct the vehicle?s market value.
For the remainder of 2004, however, the new rules do not apply. Under the rules in effect for 2004, taxpayers will be able to deduct the fair market value of the contributed property.
?Just because the rules will be tightened for vehicles donated next year doesn?t mean anyone should give a car to charity and claim an inflated value this year,? said IRS Commissioner Mark W. Everson.
IRS officials recommend that people who want to donate their vehicle by Dec. 31, 2004, take the following steps:
Check That the Organization is Qualified ? Taxpayers should make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can use the IRS Web site to check that an organization is qualified by searching Publication 78. Publication 78 is an annual, cumulative list of most organizations that are qualified to receive deductible contributions. Publication 78 is also available in many public libraries. In addition, taxpayers can call IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization?s correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified. They frequently are not listed in Publication 78. Donations to these institutions are tax deductible.
Itemize in Order to Benefit ? Many taxpayers can?t take a deduction for car donations because they don?t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2004, the standard deduction will be $4,850 for single; $9,700 for married filing jointly). Slightly more than one-third of the 130 million individual taxpayers itemized in 2001, the last year for which complete data is available.
Calculate the Fair Market Value ? The donor must take many factors into consideration to establish the value of the car. Many used-car buying guides contain step-by-step instructions so that readers can make adjustments to the value of a car for accessories, mileage and other indicators of its general condition. Both Publication 526, Charitable Deductions, and Publication 561, ?Determining the Value of Donated Property,? provide detailed instructions.
Deduct Only the Car?s Fair Market Value ? Some car donation program operators have mistakenly claimed that donors can deduct the highest value listed in a used-car buyer?s guide for their make and model of car, regardless of the donated car's condition. The IRS, however, will only allow a deduction for the fair market value of the car. Fair market value takes into account many factors, including the vehicle?s condition. The fair market value of the taxpayer?s car may be substantially different than the highest value listed in a used-car buyer?s guide for that make and model of car.
Document the Charitable Contribution Deduction ? For vehicle donations, taxpayers must document the car donation and its fair market value. Recordkeeping requirements are comprehensive and vary depending on the amount of the contribution and the total amount of the charitable deduction. IRS Publication 526 details requirements for the types of receipts taxpayers must obtain and the forms they must file.
Contact State Charity and IRS Officials When in Doubt ? Donors with questions about whether a contribution is deductible should call the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059. They can also find IRS forms and publications at IRS.gov. Donors concerned that contributions are being solicited for fraudulent purposes should contact the appropriate state charity official, who is often located in the state attorney general's office. A list of state charity official offices can be found online.
AND:
http://www.irs.gov/irs/article/0,,id=152127,00.html
IRS Reminds Taxpayers About Requirement of Written Acknowledgment for Donated Cars
IR-2005-149, Dec. 22, 2005
WASHINGTON ? Internal Revenue Service officials today reminded taxpayers that they must obtain a charity?s written acknowledgment of their vehicle donation before they claim a deduction for the donation. For deductions of more than $500, the taxpayer is required to attach the acknowledgment to the taxpayer?s return for the year of the donation.
Effective for vehicles donated to charity on or after January 1, 2005, the American Jobs Creation Act of 2004 provides that, generally, a taxpayer?s deduction is limited to the gross proceeds from the sale of the vehicle by the charity. The charity must provide a written acknowledgment within 30 days after the vehicle is sold that notifies the taxpayer of the amount of the gross sales proceeds.
The IRS is aware that questions have arisen as to whether the charity must sell the vehicle in 2005 in order for the donor who donated a vehicle in 2005 to receive a deduction for 2005. The charity does not need to sell the vehicle in 2005. A taxpayer can take a charitable contribution deduction only for the year the vehicle is transferred to the charity, even if the vehicle is not sold by the charity until a later year. (Only taxpayers who itemize their deductions can take a charitable contribution deduction.)
However, a taxpayer cannot take a charitable contribution deduction of $500 or more for a vehicle donation unless the taxpayer has received a written acknowledgment of the donation from the charity and attached the acknowledgment to the return.
If the taxpayer receives the written acknowledgment after filing the tax return for the year of the donation, the taxpayer may, after receiving the acknowledgment, file an amended return for that year and claim the deduction on the amended return. The taxpayer must attach the acknowledgment to the amended return.
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