Know the Different Types of Tax-Deductible Donations, Including Car Donations for the Benefit of Our Struggling Veterans
Donating cash or materials you no longer need such as your old car will certainly benefit and even transform the lives of many of our less fortunate countrymen and women. They include our former troops who are now experiencing hardship in their transition to civilian life.
Thanks to car donations from generous and kind-hearted fellow citizens as coursed through us at Veteran Car Donations, a good number of these veterans have seen significant improvements in their living conditions.
Thus, donating to charities gives you the perfect opportunity to make a difference in the lives of needy people.
As a bonus, you will have the chance to get substantial tax deductions. According to the Internal Revenue Service (IRS) donation guidelines, a taxpayer can deduct the fair market value of vehicles, clothing, furniture, household items, books, appliances, toys and other items given as donations to accredited non-profit charitable organizations with tax-exempt status.
To claim your tax deductions, you need to itemize such deductions when you file your federal income tax return, using Schedule A on Form 1040 lines 16 to 19.
The Types of Donations Where You Can Claim Tax Deductions
If you are not certain what types of donations can enable you to claim tax deductions, here are some pointers:
- Appreciated property
If you want a huge tax write-off, your best option may be a donation of appreciated property—securities, real estate, art, jewelry or antiques. If you donate a property that you have owned for more than a year, you can deduct its full fair market value and free yourself with the income tax on its appreciation. It’s better to keep the property for 12 months or more. For property held one year or less, the IRS will only allow you to get a deduction on the price you paid for it.
- Clothing and household items
If you are donating goods such as clothing, appliances, bedding, electronics, and furniture, you will still get tax deductions based on their fair market value during your time of donation. If you have items whose value is greater than $500, you will need to fill out Form 8283 and attach it to your return.
This is the easiest and simplest way to get a tax write-off. You get a tax deduction equal to the amount of the cash you donated minus the value of any goods or services you have received in return.
- Volunteer work
Doing volunteer services will also allow you to get a tax deduction. You can claim as tax deductions any expenses you have made during the duration of your volunteer service such as materials, supplies, stamps, parking, tolls, and other items you bought and used pertinent to your service. You can also deduct the cost of fuel you used in driving to and from your place of volunteer service at a rate of $0.14 per mile. You can also deduct the fares you paid on public transport for the duration of your service.
- Vehicle donation
If the vehicle you donated sells for $500 or less, you can deduct either its selling price or its fair market value up to $500, whichever is higher. However, if your vehicle’s selling price is more than $500, you can only deduct the exact amount for which your vehicle was sold.
Why Veteran Car Donations Is Your Best Option
If you happen to have an old car, truck, or motorcycle that you no longer want and you plan to donate it to an IRS-certified charity organization to enable you to get a tax deduction, you will be in good hands if you donate it to us at Veteran Car Donations. We guarantee to give you a 100-percent tax-deductible sale receipt after we sell your vehicle at the best auction house that we know of. We will even refurbish your donated vehicle so it can fetch its highest possible price at auction. With our link to various auction houses nationwide, we can easily and quickly sell your donated vehicles.
You can also rest assure that the entire proceeds from the sale of your donated vehicles will go to our IRS-registered 501(c)3 non-profit organization partners. They will use the funding to finance various veteran support programs that will help provide the needs of our impoverished veterans and their families.
Get Started With Your Car Donations!
What are you waiting for? Call us at 877-594-5822 or visit our FAQ page to know more about Veteran Car Donations and how we carry out our humanitarian mission for the benefit of our country’s veterans. You can start your car donation process by filling out our online donation form. Donate your vehicle now and get that tax deduction and other benefits you’re looking for!