Car Donation: An Easy Way to Support Your Favorite Charity and Get a Tax Deduction > NetSparsh

Home
>
Tax
>
Car Donation: An Easy Way to Support Your Favorite Charity and Get a Tax Deduction

Car Donation: An Easy Way to Support Your Favorite Charity and Get a Tax Deduction

Most people look forward to getting their tax return, but one of the downsides to filing taxes is that you may find yourself owing the taxman come April 15. What do you do when you realize that you not only owe money, but you owe more than you can pay at the time?

The answer is: charitable deductions.

Did you know that charitable contributions are deductible from your taxes? Most people only think of donations as being cash, and giving away more cash that you don't have won't help you in this case. However, there is another option available - donate your car. Do you have an old car sitting around (even if it doesn't run) that you're not using or are having a hard time selling? If so, you're in luck! Many charities accept car donations, regardless of condition, and this contribution can be deducted from your taxes. There are a few steps you need to take in order to claim a deduction by way of car or other vehicle donation:

First thing you need to do is find out how much value you can get out of the car or other vehicle you plan to donate. Even old cars in poor condition are often accepted for donation, as they can still be sold for parts or scrap. There are sites that specialize in this kind of information, many of them free.

Find a charity or non-profit organization you believe in. It is one thing to donate a car simply for the tax relief, but find a charity that you feel strongly about to donate your car to. You won't only be helping yourself, you will be helping others that you care about.

Thirdly, make your donation - making sure that it is tax deductible. In most cases this will be the full value of the vehicle (actual market value, not Blue Book), but state laws may vary for state income tax purposes. If you have any question about this, you should see your tax advisor.

To prevent over-estimate, the IRS requires people who donate their car to produce a document from the charitable organization specifying the resale price of the car after the car is sold off. Automobiles with retail values up to $500 are exempt from this rule. In any case, make sure you get a receipt detailing your car donation. Requesting a receipt may also be necessary if you have your taxes prepared by a paid preparer.

Donating a car may sound like a big undertaking, but it's not. You can accomplish three things at once - getting rid of an old car that is taking up valuable space, helping your favorite charity, and getting a deduction on your income taxes. If you have an old car and want to reduce your tax payment, donating a car might be right for you!

For more information on car donation, please visit Car Donation For Charity and Tax Relief.

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

KLFY
Pros and cons of taxes on the local economy
KLFY
"The problem with increasing taxes or tax rates, is that consumers, households & businesses have less money to spend. But if you cut tax rates, government has less money," said Dr. Carey Heath, Department Head of Economics and Finance at University of ...

CNBC
Find out if you're eligible for this tax-savings strategy in 2018
CNBC
If you want to slash your 2018 tax bill, consider giving away some of your wealth. This year marks the first under an overhaul of the tax code — and of traditional charitable giving. The Tax Cuts and Jobs Act roughly doubled the standard deduction to ...
10 things you probably didn't know you could deduct on your taxesBusiness Insider
Year-End Tax Tips And Strategies For Cryptocurrency InvestorsForbes
As 2018 Ends, Year-End Tax Planning is More CriticalCPAPracticeAdvisor.com

all 18 news articles »

CityLab
French Drivers Stage a Nationwide Protest Against Fuel Taxes
CityLab
Earlier this year, Macron announced tax increases on fuel, due to be introduced in January. If the plans go ahead, gas taxes will rise by €0.029 per liter ($0.12 a gallon) and taxes on diesel—a fuel once heavily promoted in France that is now being ...
Hundreds of Thousands in France Protest Taxes by Blocking RoadsNew York Times
French protesters rail against Macron's fuel taxes with road blocksCNBC
France Fuel Taxes Protest Ends With 1 Dead and 47 InjuredTIME
Bloomberg -Associated Press (press release) (blog) -Washington Post
all 2,153 news articles »

What we know about Trump's taxes
Politico
Editor's Note: This edition of Morning Tax is published weekdays at 10 a.m. POLITICO Pro Tax subscribers hold exclusive early access to the newsletter each morning at 6 a.m. To learn more about POLITICO Pro's comprehensive policy intelligence coverage, ...

KPLC
You can pay your 2018 Calcasieu Parish property taxes online
KPLC
“We are always looking for ways to make it more convenient for the taxpayers to pay their taxes,” says Sheriff Mancuso. “If you choose to pay online, there will be no lines to stand in and you will be able to pay your taxes 24 hours a day, 7 days a week.”.
Calcasieu Parish: Options For Paying 2018 Property Taxes107 JAMZ

all 2 news articles »

USA TODAY
The US knows how to address its drinking problem, but proven fixes are hard to sell
USA TODAY
When health officials wanted to reduce deaths from tobacco, they spread messages about the proven cancer risks, pushed to ban smoking in public places and worked to raise taxes on cigarettes. Alcohol, which causes 88,000 deaths a year in the United ...

and more »

Tax hikes coming
Pine Journal
Even though the state is solely responsible for setting the estimated market value for the taxes, it is unlikely the state will be held responsible for the county paying back any difference without legislative action. That means individual counties ...

CNBC
How to get your taxes done for free
CNBC
Even though the tax legislation has changed, you don't need to pay through the nose for help filing your return. In some cases, it's free. In theory, the Tax Cuts and Jobs Act — which roughly doubled the standard deduction, did away with personal ...

KATU
Check your taxes now: Experts say you may owe more than you think
KATU
At the end of 2017, lawmakers basically re-wrote tax laws in an effort to simplify them for Americans. Several popular deductions were cut. which may mean you get a tax bill in April, even a penalty, instead of a tax refund, because they didn't ...

Bourbonnais abates $18.7M in taxes
Kankakee Daily Journal
BOURBONNAIS — Property owners will not have to help the village pay off two sewer projects. Bourbonnais village trustees on Monday unanimously adopted four ordinances to abate $18.7 million in levied taxes on general obligation bonds. About $5.9 ...

Google News

Car Donation: An Easy Way to Support Your Favorite Charity and Get a Tax Deduction

Tax Tax