December 18, 2018
Save on Taxes and Donate to a Good Cause: How It’s Done
Did you know that you can save on taxes and donate to a good cause at the same time? Indeed, great deeds come with great rewards! For instance, if you donate a car you no longer need to an IRS-registered nonprofit organization, you’d surely get to claim a substantial tax write-off!
You not only save on taxes but also find an easy and cost-free way to dispose of an unwanted vehicle. Just one short phone call to a charity or filling out their online donation form would be enough to rid yourself of an eyesore in your backyard.
The most important feature of a charitable car donation program, however, is the opportunity it gives you to be of meaningful service to people who badly need help right in your own neighborhood. Extending a helping hand to the sick, the impoverished, and other needy people around you is a great way to give back to your community. It will leave you with an immense feeling of satisfaction!
Claiming Tax Breaks
Before you get too excited about the benefits of car donation both to the givers and the takers, you should know that not all charities are qualified to offer tax incentives. Keep in mind that your chosen charity should be IRS-approved, meaning it must have the certified 501(c)3 status. Otherwise, you wouldn’t receive any form of tax benefits.
To claim tax deductions for charitable donations, make sure that you itemize your taxes carefully. Also, you’ll need to determine the fair market value of your auto donation. If your donated vehicle is sold at auction for more than $500, you’ll need to submit a written acknowledgment from your chosen nonprofit, an accomplished form 8283, and a copy of your tax return.
Key Points to Remember
If you’re claiming a tax deduction for the first time after making a charitable vehicle donation, we’re here to help you out. Just take note of these steps and you’re good to go!
- In filing your federal income tax return, you need to itemize your deductions. Declare an amount for your tax write-off based on how much your donated car was sold at auction. If your vehicle was sold for less than $500, you can claim as your tax write-off the vehicle’s final selling price or its fair market value not exceeding $500, whichever is higher. In case your vehicle was sold for $500 or higher, you’re limited to claiming only your vehicle’s final selling price.
- Request an acknowledgment receipt from your selected charity and keep it for validation later on. Be sure to have it signed by an official of the charity to vouch for the authenticity of the document.
- If your vehicle was sold for $500 or more, be sure to secure a written appraisal from the charity.
- Obtain a documentation of your donation. It should include your name, the date you donated, the VIN, and a statement claiming you did not receive any goods in exchange for your contribution.
Get Hefty Tax Cut While Helping Our Struggling Vets
Wouldn’t it be great to save on taxes and donate to a good cause—like improving the living conditions of our veterans?
We at Veteran Car Donations have been working tirelessly to make sure that our veterans get the support they truly deserve. Many of them are living in pitiful condition as they continue to suffer from service-connected disabilities, physical and mental health problems, inability to find jobs, and homelessness due to poverty and lack of support.
These are our nation’s heroes who bravely fought for us, endured enormous sacrifices, and risked their lives to defend our liberties and protect our security. It’s truly a shame that they’re living miserable lives.
You can help ease their plight with your car donation. We will sell your donated vehicle via auction and use the proceeds to support our nonprofit partners in providing them with mortgage-free and specially adapted homes, free physical and mental health care services, educational scholarships, career development, employment opportunities, financial assistance, and many other benefits.
It would take just a few minutes of your time to provide life-transforming benefits to our former troops. After you contact us, we’ll take care of the rest of the donation process. We’ll handle all the paperwork and haul your car away as soon as you want us to—and you don’t have to spend a single dollar for it. Once your car is sold at auction, we’ll promptly mail to you your tax-deductible sales receipt.
Your car doesn’t have to be in good shape when you hand it over to us. Regardless of its age, mileage or running condition, we’ll gladly take it.
You can donate to Veteran Car Donations by either calling us or filling out our online donation form. We accept vehicle donations wherever you are in the United States since we have car donation programs in all 50 states.
Get Started With Your Car Donation Now!
Indeed, you can save on taxes and donate to a good cause at the same. Call Veteran Car Donations at 877-594-5822 and we’ll show you how that is done.