It used to be that, according to federal customs code, you could deduct the fair market value of any motorcar you donated to a charitable construction. On the other hand, the governance changed the act in tariff year 2005 whereas many heads were abusing it, deducting very yet means. Any more, there are also hoops you admit to gambade over to cinch the deduction you can part on your donated vehicle.
Instructions
1. Dispose what the charity is going to close with the vehivle. Whether the charity is going to simply resell it, the most you can influence as a deduction is what they sell it for provided it makes and than $500. Solicit the assembly to supply you with a getting as soon as feasible so you can feather it to the IRS.3. Make sure you're following IRS rules before you fill out that tax form. What happened in 2005 could happen again, and you want to make sure you're up to date on any procedures that could affect the value of your car donation.4.
Two good places to look are at Kelley Blue Book or Edmunds' True Market Value calculator. When you use either set of forms, be brutally honest about the condition of your car. Since the charity will have a record of your car's whereabouts, it won't be hard for an auditor to tell if it is brand new or quite old.
If instead, the charity is going to use your car as part of its mission, either by fixing it up, driving it or providing it to someone that needs a vehicle and can't afford one, proceed To pace 2.2. Figure out the fair market value of your car. Remember that this is not the same as the resell value.
Go to the IRS Website. You'll find it in our Resources section. View the tax tip section. Then don't forget to include a record of your donation with your tax return if the law requires it. In 2008, you need to include Form 8283, but this may not be the case for future tax years.
