How to Choose a Charity for a Car Donation
1 Find a charity for your car donation online. For maximum tax benefit, you need to find a non-profit organization where the donation of the car will be used "in the direct pursuit of charitable purposes of the organization." Examples could be either by the car used in the business or the car is given to a customer in need.
2 One way a charity uses a car for the direct pursuit of their charitable purpose is if they use the car in the business. This would mean that the organization will keep the car, and possibly give an employee to use. Or, perhaps the car donation will be used for the business of delivering its products, as another example
. 3 A second way the car donation center could use the car is to make significant use of the assets. The charity can choose to make hardware improvements on the car,
Call Charity Cars or donate online at their website (below). Charity Cars generally provides the simplest method and the best tax deduction from any charity. Charity Cars will make a predetermination of whether your car can be used as a car which can be donated to a family in need of the program. You will receive an email or newsletter regarding the decision. If the car is not worthy, it will be sold at auction or for recovery, in which case you can only car donation for tax deduction for purple heart use the sale value or the recovery value. If you are pre-approved, you will send Charité Cars your signed title, and they will pick up the vehicle and have it inspected. If approved, you get a tax reduction voucher in the email letting you know that you can take fair market value for tax purposes. To find the fair market value, you can use the Kelley Blue Book, with the online source below. Use the "private party value" in the book.
Once your vehicle donation has been accepted to be used to further the charity's goal, you are ready to fill out your tax forms. You must use Form 1040 if you will be itemizing the deductions (which you are going to do.) Get federal tax form 1040 online from the IRS website listed below. You will also need an Annex A and B for Form 1040. Annex A and B are on one page, front and back. Only Annex A is relevant here, as it is the form of itemized deduction. Once you have Form 1040 and Schedule A, you will need to fill in the appropriate places on each form for your charitable car donation. In Appendix A, find the section marked "Gifts to charity." There will be a line for "gifts other than cash or check." You will place the fair market value of your donation on this line (sum of all other charitable donations other than cash or check). If the amount of your charitable donations is more than $ 500, also complete Form 8283, available on the IRS website. 5 Once you complete the rest of Schedule A, the total of your itemized deductions will go to Form 1040. They will go to the line marked "Document deductions."