When Donate your car check how to Tax Deductions Work..

Our deduction for charitable donations for donating your car to charity, which will result in significant tax savings. However, do a little planning to make sure you get the maximum tax on your gift economy. Internal Revenue Service (IRS) uses your donation to the charity of your deduction, depending on whether one, two ways to calculate. Cars charitable deduction only on the sale price. In other cases, it can be used. Because the market value


Step 1: Find out how to sell the car to charity
Use your car to the selling price of charity receives an amount of your deduction. For example, if the charity sells the car at auction for $ 3,000, the deduction is the fair market value of $ 4,500, even $ 3,000 only. The charity sells the car to a poor person or a discounted price if you put the car in their own internal use, may apply. A deduction for the fair market value

Step 2: Determine the fair market value of the car
In calculating the fair market value of S used to use a price guide for used cars reputable suggests. For example, deduction, go to your local library to obtain a current copy of the Kelley Blue Book. Your make, model and condition of your vehicle at a price corresponding to the terms of private research. These searches can be on the Internet.

Step 3: Claim Deductions
If you do not itemize, you can claim your car donation as a deduction for the amount of your deduction on line 17 A. Liaison Report, the standard deduction for your filing status and the size of the table you have only one total eligible costs of the crossing.
To use TurboTax to prepare your taxes, we will help you determine which filing status will help. The largest tax savings

Step 4: Additional forms are
Your deduction of $ 5,000, you have Part B, if you have to finish crossing the detective $ 501 and $ 5,000 for your car donation deduction, instead of $ 500 if Form 8283, fill the area to be filled and if section B, you should get over. The evaluation and written documentation

If you use TurboTax again, ask simple questions and fill out the forms correctly, you should.

Remarks

If the charity sells your car for sale $ 500 or less $ 500 or less what you and your vehicle, you can deduct the fair market value. Your car is worth $ 650, but sells for $ 350, for example, you can deduct $ 500.
Most of the selling price of your car will allow you to have the 1098-C form charity.
Warnings

You will need documentation of your donation. At least the documentation named charity identification number of the vehicle, the date of the donation, including a statement as possible. Products and services