Would you like to have real information about tax deductions and
your charitable contribution?
Please read this page.
Follow these steps and you can find out the fair market value of your
vehicle right now.
- Click on either of these two links to go to the Kelley
Blue book site, http://www.kbb.com.
Clicking on these links will also launch a second browser window so
you can read these instructions in one window and apply them in the
other.
- On the first page in the top left paragraph, called "What's
My Blue Book Value?" click on the link called "Private
Party Value".
- On the page that comes, up click on the Year of your car.
- On the next page that comes up, click on the Make of your vehicle.
- On the next page that comes up, click on the exact Model of
your vehicle.
- On the next page that comes up there are a series of boxes requiring
information. In the top box you are asked for things like the type of
engine or whether automatic or manual transmissions, etc.
Check these correctly according to your car.
- In the next box (down) you need to fill in the Mileage of your
car and your Zip Code.
- In the next box you need to check off the various Options that
apply to your car. These are things like Power Steering, air conditioning,
cruise control, etc. etc. Check all that apply.
- The bottom box is entitled Select Vehicle Condition. Choose
Help Me, which is the last box on the right. This is important
in order to accurately get the Fair Market Value for your vehicle.
- After choosing "Help Me" click on the bottom button
called, "Get Pricing Report". This takes you to another
page.
- On this page you rate the following: Exterior Condition; Interior
Condition, Mechanical Condition, Miscellaneous. Each
of these categories has several aspects of the car's condition to rate.
There are usually 3 columns for each of these aspects. Choose one rating
for each. Do not skip any of these. You will thus fully rate
your car.
- When this is done click on "Get Pricing Report" at
the bottom of the page.
- This takes you to a page that gives the Private Sale Value for your
car rated exactly as it is, in its current condition. You should print
this page for your tax record.
Information concerning boats, motorcycles, RVs, motor homes, etc. can
be obtained by visiting the NADA
website.
The Fair Market Value of your vehicle cannot be determined by a charity;
the IRS considers that to be a "conflict of interest". A charity's
tax receipt is, however, proof that you made the donation. The vehicle's
fair market value has to be determined by you, unless the vehicle has
a value of $5000.00 or more, then a certified vehicle appraiser must make
that determination.
For more information about determining the "fair market value"
of a vehicle visit our IRS
Information page.
Visit the link and read Publication 526 Charitable Contributions.
Be sure to read the section entitled,"Contribution of Property."
Also be sure to read the section called "Determining Fair Market
Value".
In that section there is another section called "Cars, boats,
and aircraft." This gives very specific information about that
type of donation.
Another link on the IRS
Information page takes you to a page called Publication 561 Determining
the Value of Donated Property. You can explore any of the links on
this page for more information.
top
of page
All auto donations donated to charitable organizations granted tax exemptions
under section 501 (c) (3) of the Internal Revenue Code are tax deductible.
WARNING: Not all charitable organizations
have been granted tax exemption under section 501 (c) (3) of the Internal
Revenue Code. We would advise you to read what is stated by any charity
donation site.
The IRS has granted tax exemption under section 501 (c) (3) of the Internal
Revenue Code to our charity
We suggest you visit our IRS
Information page and click on the link to the IRS News Release: IRS AND STATE
CHARITY OFFICIALS URGE CARE WHEN MAKING A CAR DONATION. You can read this article
for special tips from the IRS when making a charitable contribution of a vehicle.
top
of page
Itemizing Taxes - Do I need to itemize deductions?
If your primary motivation in donating a car is to gain a tax deduction
you will need to itemize your deductions on your Federal and State Tax
Returns.
If currently you are not itemizing your deductions on a Long Form, your
accountant would be able to tell you if making a car donation would justify
switching to itemizing your yearly deductions and using the longer form.
Car Donation Child Charity will provide you with the needed IRS tax form
8283 if requested.
We suggest you visit our IRS
Information page and check out all of the links to the IRS website to get
a complete understanding of the IRS view of a noncash charitable contribution.
top
of page
Does the new tax law affect how much I can deduct on my 2005 income tax return?
Thanks to the new tax law, the IRS has taken the guesswork out of how to determine the value of your vehicle.
Beginning January 1, 2005 you may deduct the full price we receive for the sale of your vehicle. This greatly simplifies the process for you in several ways:
-
If your vehicle sells for more than $500 you’ll know exactly the amount you may deduct, eliminating guesswork. Thus you no longer have to research and come up with an estimate of the fair market value of the vehicle.
-
This also eliminates the risk of you getting into trouble by overstating the value of your deduction on your tax return.
-
This saves you both time and risk.
Here is how it works:
Under the new law, if your vehicle sells for $500.00 or more at the dealer auction house, we are now required to send you a receipt containing the following information:
-
Your name and the VIN of your vehicle;
-
The fact the donation was "arms length", i.e. that we are not related to you in any way, family or business-wise;
-
The selling price of your vehicle becomes its fair market value.
This makes the entire procedure very simple for you. And eliminates any risk from the IRS.
If you car sells for less than $500.00 at auction, you may deduct what you consider as the fair market value of your vehicle, as long as that figure is under $500.00.
In this case, we will be sending you a less detailed tax receipt that simply acknowledges your donation (with your name, date of your donation, and the description of your vehicle).
top
of page
What proof do I need for my deduction?
You will need a tax receipt with a 501 (c) (3)'s name and Federal Tax
ID number on it verifying the date, the year, make and model of your vehicle
donation. You should keep this receipt for at least three years with your
all of your tax information for the year you made the charitable contribution.
top
of page
|
| Fair Market
Value | Tax
Deductible | Itemizing
Taxes | Tax
Benefit | Donation
Proof | 
