Information About Car Donation153060
If you're considering donating to charity, a car donation may just be of great benefit to you. The new tax laws have made it a bit more challenging, but overall it is well worth the effort. Before you donate a car, there are a few things you should understand.Read on to get a clearer picture of the way car donations are handled and to find out how you can best use them to your advantage. The right option will make all the difference.
The first thing you need to consider when donating a car is if the charity you have chosen is one that is eligible. They have to have been given 501-(c) (3) status by the IRS in order for you to get any benefit from your car donation. Ask them to see proof of this before you sign anything.Ask for and keep receipts pertaining to the car donation. These will come in handy not only when you file but if you get audited.
New York Car Donation - Donate Your Car To Charity Today & Help A Child With Cancer! Find out more here: http://donateacar4charity.com/donate-car/donate-a-car-long-island-ny/
The IRS sees car donations as a red flag, unfortunately and they may want proof that the vehicle was actually donated.In addition to your receipts you must also file a form 8283 section "A" if the car is valued at less than 500.00. You must sent this along with your other forms and documentation. They will also need a statement from the charity regarding the donation.If the charity in question has sold the car you need a written statement of the disposition of the sale. The IRS will want to be certain it has not been scammed. The documentation must prove that the person who bought the donated car is not a family member of yours or other acquaintance.
The sale also had to have been with in a 30-day time frame from when they received the car donation.If the charity will be using the donated car they have to provide you with a statement. The statement should include any repairs or alterations they expect to make and what the primary use of the car will be. The issuance of a false statement is punishable by law for both parties.If the donated car is a valuable on, over 5000.00, you will still need to fill out the 8283 form but this time section "B." The IRS wants you to get an independent appraisal for cars worth this and more. If the car donation is under five thousand you can use the standard forms of getting a valuation. visit their website - DonateACarForCharity.com
The last thing that we can say that may help you is to record all figures from the car being donated date, mileage and other figures that prove the valuation is an accurate one. Take photographs of the interior and exterior of the car donation.In the end it falls on your shoulders. Do not let the charity set the value for your car donation it won't be them that has to pay the price, it will be you. Keep copies of everything just in case.
