Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts
Monday, July 9, 2012
Another Car Donation Video!
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Saturday, April 21, 2012
Another Infographic
Here is another interesting infographic about charity relief funds in the US and FEMA.
[click this link for the large version of the image]
Thursday, April 12, 2012
Helpful Link of the Week #2
This week's helpful link is:
Donate a Car 2 Charity
"Activated Ministries is a nonprofit Christian ministry working with dedicated missionaries and human service agencies to meet the spiritual and material needs of people from all walks of life, regardless of age, gender, race, faith or nationality. Our goal is to make a difference in a world where today’s busy schedules often crowd out the things that matter the most—love for God, love for family and love for others."
Donate a Car 2 Charity
"Activated Ministries is a nonprofit Christian ministry working with dedicated missionaries and human service agencies to meet the spiritual and material needs of people from all walks of life, regardless of age, gender, race, faith or nationality. Our goal is to make a difference in a world where today’s busy schedules often crowd out the things that matter the most—love for God, love for family and love for others."
Tuesday, April 10, 2012
Tips for Donating Your Car
Here are some more tips for the whole process of donating your car!
- Make sure the charity is eligible to receive tax deductible contributions. Ask for a copy for your records of the organization’s IRS letter of determination which verifies its tax exempt status.
- Be sure that you get a receipt from the charity for your car donation.
- Be aware that non-cash donations are one of the most common triggers to an audit by the IRS, so you’ll want to document the value of the car and keep records of it.
- If the car is worth more than $500, the donor must complete Section A of IRS Form 8283 and attach it to their tax return. Donors are required to file with his/her tax return a written acknowledgement from the charity. If the charity sells the car, the charity must provide the donor with a certification that the car was sold at "arms length" between unrelated parties and the sale price of the car within 30 days. In this case, the donor's tax deductions will be limited to the total amount the charity sold the car for. If the charity does not sell the car, it must provide the donor with a receipt within 30 days of the sale. The charity may also be required to provide certification to the donor stating how it plans to use or improve the car and stating that it promises not to sell or transfer the car. Penalties are imposed on charities that provide fraudulent acknowledgements to donors.
- If the car is worth $5,000 or more, an independent appraisal is necessary. The donor must also fill out Section B of IRS Form 8283. For cars worth less than $5,000, use the Kelley Blue Book, the Hearst Black Book, or a guide from the National Auto Dealers Association (NADA) to determine the market value. Make sure you use the correct figure for the date, mileage, and condition of your car. Picking the highest figure for your car model and year without taking into account other factors may not pass muster with the IRS.
- Take pictures of the car and save receipts for new tires or other upgrades to verify its value.
- Remember, it is the donor, not the charity, who is obligated to value the car and who will pay the penalties if an IRS challenge finds your figure inaccurate.
Friday, April 6, 2012
Important Car Donor Facts Part 2: FAQs
Vehicle donors are still eligible for a tax deduction on their itemized federal tax return! Donors are eligible for a deduction of up to $500 or the amount their vehicle sells for over $500. Many charities are now selling many donated vehicles at public auctions to increase the selling price thus maximizing the tax deduction for donors.
If the value of your donated vehicle is greater than $500, you will be notified of the selling price within 30 days of its sale.
Almost all vehicles are accepted, whether running or not!
Yes. You must have either a title or transferable registration for the vehicle and the keys for it. In addition, your vehicle cannot have any parts missing, including the battery and all of the tires have to be inflated. Also, your vehicle must be in a place where a large tow truck can easily get to it.
If you cannot locate your title, please obtain a duplicate title from your local Department of Motor Vehicles.
Yes. Your title needs to be in the hands of the charity you are donating to.
Generally, it takes 2-5 business days from the date we receive your title for the vehicle to be picked up. The towing service will call you in advance to make the arrangements.
If your vehicle is parked on the street, someone will need to be present when the towing service arrives. You do not have to be present if your car is parked in your driveway and it is in a position where a large tow truck can easily get to it. In this case, you will need to tell the towing service where you are leaving the keys. Do not send the keys with your title!
Wednesday, April 4, 2012
Important Car Donor Facts Part 1: Taxes
If you're visiting this blog, you might be wondering "what are some facts about donating your car to charity?" Luckily, we're here to tell you all about donating your car to charity.Car donation is mutually beneficial to all parties involved, the charity gets money to help the needy and the needy have a means of transportation, and the best part of all of it is that the IRS will give you a nice tax reduction, which is what we'll be focusing in this part!
The donated benefit from the car to the charity can vary considerably. In some cases, the full amount of the donation goes to the organization if the charity sells the car itself or uses the vehicle to help fulfill some program services need, for example, delivering meals to people. But if a third-party broker is involved, the charity may receive only a tiny part of the resale price of the car (sometimes even less than 20%) or it may receive an even smaller portion of what is left after all the expenses have been paid by the broker, which can result in even smaller amounts going to the cause.
If you are claiming a car donation of $500 or above, you will need to complete and attach IRS Form 8283 to your tax return. For your records, you also will need proof that you made a charitable gift. The best evidence is to transfer the title of the car to the charity and keep a copy of this document.
Why all the fuss though? For some households, a car donation may be the single largest charitable gift made during the year, or ever. This is all the more reason to make sure that the donation is being used for the greatest charitable benefit and that you can take full advantage of any potential tax deduction.
Here's a handy donation checklist:
The donated benefit from the car to the charity can vary considerably. In some cases, the full amount of the donation goes to the organization if the charity sells the car itself or uses the vehicle to help fulfill some program services need, for example, delivering meals to people. But if a third-party broker is involved, the charity may receive only a tiny part of the resale price of the car (sometimes even less than 20%) or it may receive an even smaller portion of what is left after all the expenses have been paid by the broker, which can result in even smaller amounts going to the cause.
If you are claiming a car donation of $500 or above, you will need to complete and attach IRS Form 8283 to your tax return. For your records, you also will need proof that you made a charitable gift. The best evidence is to transfer the title of the car to the charity and keep a copy of this document.
Why all the fuss though? For some households, a car donation may be the single largest charitable gift made during the year, or ever. This is all the more reason to make sure that the donation is being used for the greatest charitable benefit and that you can take full advantage of any potential tax deduction.
Here's a handy donation checklist:
- Verify that the recipient organization is tax exempt as a charity.
- Make sure the title of the car is transferred to the charity's name and keep a copy of this record.
- Find out how the charity financially benefits from the resale of the car.
- For tax records, take a photo of the car and keep copies of current classified ads or guide value estimates for similar vehicles. (For more deductibility information, get a copy of IRS Publication 561, Determining the Value of Donated Property.)
- If the car is worth more than $5,000, get a written professional appraisal.
- Find out if the charity is properly registered with the government agency in your state that regulates charities (usually a division of the state’s office of the attorney general).
Here's the official IRS document concerning car donations in the US:
Tuesday, April 3, 2012
Helpful Link of the Week #1
Here's this weeks helpful link:
Cars 4 Causes
"Cars 4 Causes is a non-profit organization that supports youth education. We are America's 1st vehicle donation charity. We’re experts at turning your vehicle donations into cash for charitable causes. Our staff is friendly, knowledgeable and happy to answer any questions you have about your car donation."
Cars 4 Causes
"Cars 4 Causes is a non-profit organization that supports youth education. We are America's 1st vehicle donation charity. We’re experts at turning your vehicle donations into cash for charitable causes. Our staff is friendly, knowledgeable and happy to answer any questions you have about your car donation."
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