Donate a Car for Cancer

Donating a car for Cancer and claiming a tax deduction, tax deductions for donations ,the tax rules are a little different now. The reason for this donation change is because people were taking advantage of the value of their car and over-estimating the overall price to get a bigger chunk of change for themselves when tax returns came back to them.

Sounds very shady and ill-advised and it is. It is a shame that people take advantage of this when the whole purpose is to GIVE and not necessarily receive. But, it happens and thus rules had to be upgraded.

For starters, in order to even qualify for this tax deduction, you must itemize deductions on your income tax. This, in essence, eliminates everyone using a 1040 short form or those who do not itemize. More charitable reduction can't be more than 50% of your total income. I am puzzled to why this even matters to the government but it is now a necessity. The amount you are able to take away for your contribution effort depends on what the charity does with your car donation.

Check the this site: www.irs.gov for more info. Since I am NOT a tax attorney, accountant or do anything profitable with taxes, I highly suggest to contact a local tax pro for updated info on this matter.

Items Needed:

• Your Full legal name and Taxpayer ID (social security number)

• The vehicle Identification numbers (Vin Number)

• Date of your contribution

There are some details that may be needed but this is the basic outline required.

The IRS also limits the value of the car donation deduction to what the charity receives from selling the car. However, you can use the fair market value if some basic rules are adhered to and you get a statement from the charity regarding their plans for your car donation.

Example:
Lets say the charity only sells your donated car for 500 dollars and in reality the car was worth 4500, your legal deduction for the donated car is only 500 bucks.

Making things more complicated than they should be, the value of the car can't be higher than the fair market value. This is just how it is. My friend had personally sold his car and made a cash donation to his favorite charity.

Of course it will take more time but he did not rely on anyone else to provide the necessary documentation and there was no question about the value of the donation or deduction.

How to Donate a Car for Cancer

Rather than selling your older car, you can decide to donate it to a cancer charity. Likewise, helping the battle against cancer, you'll also obtain a tax benefit for your donation. Example: Google this "donate your car sacramento " and it should pull up many options for that search!


Instructions

1.
Donating a Car for Cancer
* 1

Get hold of the Cancer Fund of America, American Cancer Society, American Cancer Fund or Breast Cancer Fund and find out if they have a local chapter in your residential area that's accepting donated automobiles.
* 2

Ascertain the worth and value of the vehicle using the Kelley Blue Book, the Hearst Black Book or a guide from the National Auto Dealers Association (NADA).
* 3

Take photos, clips and or videos of your car to affirm its value.
* 4

The charitable organization will usually come by and pick up the car free of charge, typically within 24 to 48 hours.
* 5

Most charitable establishments will take care of all the necessary Department of Motor Vehicles processing forms and legal constituents. Confirm the organization you're donating to, contact and inform the DMV of the change of title, and if not, call the DMV yourself.
* 6

Make sure to receive a tax receipt for the car donation.




Tips & Warnings

*

Remember to ask about what percent of the vehicle's proceeds will go toward the fighting cancer charity.
*

Since 2006, a provision limits tax write-offs of $500, or if above $500, the revenue proceeds of the car sale. If the organization is leaning toward selling the vehicle, make certain it sends out a Statement of Receipt to you for the total gross sale price of the car because that will be the sum of money you'll receive for your tax relief. On the other hand, if they plan on keeping the vehicle, make a point that they provide you with a statement pertaining to this effect. You should then receive your tax break solely upon the estimated value of the car donation. You must complete Section A of IRS Form 8283 and attach it to your income tax return. If the automobile is valued at $5,000 or more, an autonomous estimate is a necessity. You must complete Section B of IRS Form 8283.