Knowing About the Car Donation Tax Deduction

by: Levi Hansen

There are charitable organizations that help the poor and the less fortunate. And these kind of organizations rely mainly on donations and whatever cash and resources that they can raise through various activities. They accept donations, whether in cash or kind, and even car donations.

The practice of donating vehicles like cars to charities is not a new practice. But it was only recently with the new enacted tax laws that the law became clear on how one can avail of car donation tax deduction.

So if you have an old car and you are planning to buy a new one and you want to free up the garage space, you could donate it to charity and avoid all the hassle. Look for a charitable organization that is eligible to accept donations so that you can avail a car donation tax deduction.

By donating your car to charity, you can avail of a tax write-off and you can also help the charity's charitable activities in the process. With a single act, you can do something good for your less fortunate fellowmen and you can gain something for yourself in return, aside from the good feeling of having done something good.

And when really decided on donating a car to a charitable organization, one must make sure that the organization is eligible to accept such a donation. One can only avail of a tax deduction if one donates it in the proper way and observes the procedures specified by the law.

Donation donors can get the necessary documents from the IRS and can help them determine the eligibility of the target charity and the eligibility of a donor to avail of tax deduction. If a charity is not eligible to accept donations like cars and other vehicles, a donor will not be able to avail of a tax deduction.

And for one to avail of a donation tax deduction, there is some paper work that needs to be done. There are charities that help with the whole procedure especially by processing the car donations made to them and give their donors tax deductible receipts.

A written acknowledgment from the charity is then needed to be filed together with the donor's tax returns for one to avail of the car donation tax deductions. And it is highly recommended that one keep pictures and all the necessary documents handy in case questions or problems may arise in the future.