Maximize Your Tax Benefits with a Car Donation to Charity
Have you been thinking of donating your old vehicle to charity to get a nice deduction on your taxes? Now is a great time todonate your car to Kidney Cars before the end of the tax year. Gifting an old clunker has become a favorite way for Americans to get a tax benefit while getting rid of a vehicle they no longer need. It allows you to escape the hassle of trying to sell your car or haul it off somewhere and in turn benefits a good cause.
Here are some things to consider when donating your car to maximize your tax benefits.
1. Make sure the charity qualifies for a car donation tax benefit.It must be registered as a 501(c)(3) non-profit with the IRS, otherwise your donation will not be tax deductible. Kidney Cars meets this requirement.
2. Itemize your deductions. When taking a car donation deduction on your tax return, you must itemize your deductions. There are specific guidelines about the amount that can be claimed. Kidney Cars will send you a receipt giving you the amount that you can claim.
3. Use IRS Form 8283. If the fair market value or sale price of your vehicle is more than $500, you must fill out section A or the IRS form 8283 and include it with your tax return. If your vehicle’s worth ends up being more than $5000, you may want to get an independent appraisal before donating it and then complete section B of the IRS form 8283.
4. Take pictures of your vehicle. Keep any repair and work receipts of your car and snap some photos of it before donating. You may refer to these when claiming your donation as a tax deduction.
You can also read through publication 4303 of the IRS which is a Donor’s Guide to Car Donations.
Donating your car to Kidney Cars is a great way to let go of an old car, get a tax deduction and benefit those affected by kidney disease.
Help improve lives and donate your vehicle today.
We accept vehicles even if they no longer are running, as long as they have a title.
There is no cost to you, simply call us at 800.488.CARS (2277) or complete our online form.
Then schedule a pick up time that fits your schedule. You can make a difference in the lives of millions with kidney disease.