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Archive for June, 2006

Teddy Bear Cops Accept Los Angeles Car Donations

Friday, June 30th, 2006
Teddy Bear Cops is endorsed by the LAPD and handles Los Angeles car donations. The organization encourages donors to fill out applications online to make the process quick and convenient, then the Teddy Bear Cops team reviews the application form and provides the donor with a speedy answer on whether it can accept the used vehicle. If it agrees to accept the donation, the charity will e-mail instructions to the donor that include the phone number of a towing company that will take the car donation to an auction house. After the car donation is sold at auction, the charity sends the donor a receipt that is used to claim a tax deduction with the IRS.


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Special rules about tax deductions for car donations took effect January 1, 2005.

Thursday, June 29th, 2006
Qualified organizations that receive vehicle donations after December 31, 2004, must give the donor a written acknowledgement of the donation if the claimed value of the donated vehicle is more than $500. The acknowledgement must include the donor's name and taxpayer identification number (TIN), the vehicle identification number (VIN), a statement certifying the organization sold the car in an “arm's length” transaction between unrelated parties, the gross proceeds from the sale, a statement that the donor's charitable contribution deduction may not be more than the gross proceeds from the sale, and the date of the contribution. This acknowledgement must be provided within 30 days of the sale of the car. The organization also must provide this information to the IRS.


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Valuing a non-operational car donation requires different standards.

Wednesday, June 28th, 2006
The Kelley Blue Book or any other published reference for valuing used cars is generally invalid for determining the amount of an itemized contribution if the car does not operate. You may want to enlist a professional appraiser to determine its value, which may be only the sum of its working parts.


For more Car Donation tips, visit http://CarDonation.lifetips.com

Timing your car donation is everything!

Tuesday, June 27th, 2006
The timing of your auto donation is critical. All charitable gifts must be made in the tax year for which you are filing the return. To claim a donated auto on your 2005 tax return (due next April 15), you must give it and all supporting documentation to a charity by this coming December 31. If you donate after December 31 of this year, the donation can be deducted for the NEXT tax year.


For more Car Donation tips, visit http://CarDonation.lifetips.com

 
 

 


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