Tax Deductions On Car Donation Explained

Any donation you​ make to​ help out a​ worthy cause can also help you​ with your taxes. if​ you​ have an​ old car parked in​ your garage and you​ don’t know what to​ do with it,​ car donation is​ a​ wonderful way to​ help a​ charity. Although the​ car donation laws have changed,​ this is​ still a​ good way to​ help yourself and others too.

In 2018,​ the​ laws changed regarding tax deductions on​ boats,​ vehicles or​ airplanes that are valued over $500. Now,​ the​ charity must provide written documentation or​ acknowledgement within the​ 30 days of​ processing your donation. if​ the​ charity gives an​ exaggerated or​ false statement,​ they can be fined or​ penalized.

Under the​ January 2018 rules,​ your tax break is​ based on​ how the​ charity uses the​ donated vehicle. if​ the​ car is​ sold,​ the​ gross sale price can be deducted. if​ the​ charity uses the​ donated car following the​ new law for “significant” charity work that is​ tax approved,​ you’ll be able to​ deduct the​ market value of​ the​ vehicle. However,​ some stiff penalties will be charged for falsified documents. the​ law is​ watching carefully those charities not following the​ rules and regulations involved with car donation.

Even though the​ old laws had some problems,​ many charities are skeptical about the​ new car donation laws. a​ lot of​ organizations are concerned about what might happen when the​ responsibility of​ tax deduction is​ put under the​ authority of​ the​ charity rather than the​ donor. Some of​ them have actually sent a​ letter to​ the​ Treasury Secretary that suggests that people may be discouraged from donating cars if​ they aren’t aware of​ the​ deduction amount that will be allowed. This,​ they fear will mean that some donors will be lost. Charities feel that donors must be able to​ weigh the​ cost of​ benefit in​ order to​ know if​ it​ is​ enough for them.

If you​ do decide to​ pursue car donation,​ you​ will find out that the​ process is​ easy. you​ can contact most charities by phone or​ online. it​ is​ important to​ ask the​ charity you​ wish to​ get involved with for some specific and important information. This is​ necessary in​ order to​ avoid complications and also be sure you​ understand the​ process. It’s not hard,​ but does require you​ to​ fill out some important information and get the​ car ready.
Tax Deductions On Car Donation Explained Tax Deductions On Car Donation Explained Reviewed by Henda Yesti on June 30, 2018 Rating: 5

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