Car Donation Tax Deduction

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Car Donation Tax Deduction

Donating a car is a fun charity event. Especially because your donation will be rewarded with a nice tax refund for you. But surely remain the most important part to help those in need. But it would be very disappointing if you find out if you do not get a tax deduction as you would expect just because a small mistake. Here I 'll share tips to get the appropriate tax deduction.

1. Make sure the organization you donate a car charity included into IRS -approved 501 ( c ) (3) organization.
   It is very important that will determine whether or not you make a claim on your tax return. It is therefore advisable to check the status of your car organization IRS site before deciding to make a donation.
2. Stay in touch with your local charitable organization to donate your car to monitor the development of sales.
   Under legislation drawn up by American Jobs Creation Act of 2004, the receiving charitable organization must, in 30 days of the sale, Provide you with an acknowledgment stating the amount of the gross proceeds of the sale. If the charity decides to significantly use, or materially Improve the vehicle, they must certify That pun intended use and duration, and Provide an acknowledgment within 30 days of your vehicle making the contribution, in the which case you can deduct the " fair market value " of the vehicle.
3. Make sure you indicate your donation using detailed tax refund when you file tax returns. Consult with your accountant to ensure you get a nice tax refund.
4. Point to 4 at the same time last point is to make sure your contribution up to that need, so your donation is really right on target and deserves to get rewarded with tax deduction on time.