Giving away your car to a charitable organization is one way you can get tax deductions from your income. It has become a popular way of getting tax deductions for most individuals and companies. In America, the process regarding taxation usually involves the following; an individual earns a certain amount of money in a year which is usually referred to as the "gross income". The IRS determines how much money will be deducted from your "gross income". The amount that remains is the taxable income. This is what is taxed at a percentage that they decide based on the income range. The more income that you earn, more tax that you are required to pay.
Tax payers can deduct certain things to reduce their taxable income. The main deductions are standard deduction and itemized deduction. In the standard deduction the deductions are predetermined for you by the IRS. Your total deduction will have to be more than the standard deduction for you to qualify for a tax deduction.
All you need to know is that as long as you total deductions are more than the standard deductions that you may get, you become eligible for a car donation tax donation. Here's all you need to know about this whole process;
1. Asking the organization for an Internal Revenue Service's letter of determination will verify the eligibility of the charity chosen as a recipient.
2. A letter of determination from the Internal Revenue Service is important to make certain of the eligibility of the charity you choose as a recipient for the car.
3. Make sure that you are given an authentic receipt by the charity that receives the car.
4. Take several up close pictures of you car from both inside and outside
5. Have pictures of the inside and outside of the car that you are donating.
6. It important to note that it is not that the charitable organization is under no obligation to come up with the accurate value and you'll have to pay any fine if the IRS reviews or challenges you and finds that your figures are unsubstantiated.
Alternatively, you could sell the car privately for a figure close to its total market value by either using an online website or car dealers. This is usually hard to pull of so good luck with that. - 15275
Tax payers can deduct certain things to reduce their taxable income. The main deductions are standard deduction and itemized deduction. In the standard deduction the deductions are predetermined for you by the IRS. Your total deduction will have to be more than the standard deduction for you to qualify for a tax deduction.
All you need to know is that as long as you total deductions are more than the standard deductions that you may get, you become eligible for a car donation tax donation. Here's all you need to know about this whole process;
1. Asking the organization for an Internal Revenue Service's letter of determination will verify the eligibility of the charity chosen as a recipient.
2. A letter of determination from the Internal Revenue Service is important to make certain of the eligibility of the charity you choose as a recipient for the car.
3. Make sure that you are given an authentic receipt by the charity that receives the car.
4. Take several up close pictures of you car from both inside and outside
5. Have pictures of the inside and outside of the car that you are donating.
6. It important to note that it is not that the charitable organization is under no obligation to come up with the accurate value and you'll have to pay any fine if the IRS reviews or challenges you and finds that your figures are unsubstantiated.
Alternatively, you could sell the car privately for a figure close to its total market value by either using an online website or car dealers. This is usually hard to pull of so good luck with that. - 15275
About the Author:
Mark Peter is a tax professional who owns the website at http://www.Irs-Deductions.org which helps taxpayers learn tax laws concerning federal tax deductions. The tax deduction checklist helps you easily claim as many IRS tax deductions as possible.
