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Archive for June, 2007

Charity Must Provide Receipt for RV Donation

Tuesday, June 26th, 2007
When you donate an RV that is valued at more than $500, ask for a receipt. You should get the receipt when you transfer the donated RV to the organization, and you will need the receipt when filing your taxes to get a write-off. The receipt must contain: * Your name and taxpayer identification number * Vehicle identification number, or VIN * Date of the contribution. It must also state that the charity did not provide any services for the donation.


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When to Deduct Fair Market Value on Your Donated RV

Monday, June 25th, 2007
When you donate an RV, be careful if the charity says you can use the RV's full value or fair market value as your tax write-off. Generally, the IRS only allows the used vehicle's fair market value if the charity plans to use the vehicle in its charitable work. The other exception is if the charity "materially improve(s)" the donated vehicle, the donor can deduct its fair market value. The IRS rules on these exceptions are detailed, so donors may want to get advice from an accountant. Another resource is the free IRS Publication 4302, "A Charity's Guide to Vehicle Donations," covering cars, RVs, boats and airplanes. When in doubt, visit the IRS' website for more information.


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Junking Your Car? Donate It!

Sunday, June 24th, 2007
Streets of today are becoming more and more congested with all types of vehicles, and car manufacturers produce cars at a fast pace, and it seems some motorists replace vehicles models just as quickly. In this scenario, it is safe to assume that there are plenty and still useful cars being junked or rotting away all across the globe. If you own one and have no use for it, why not donate it?

Figuring Your Tax Deduction for a Donated RV

Sunday, June 24th, 2007
There usually is not much guesswork in calculating the tax deduction for your donated RV, which often happens with car donations. Why? Because IRS rules on figuring the tax deduction for a donated vehicle are based on how the charity uses the donation. If the charity sells the vehicle for proceeds -- which often happens with RVs -- the donor must use the resale amount as his/her tax deduction. Donated RVs, including campers, trailers and motor homes, typically are sold by charities, which do not have use for them in their programs and services. But there are exceptions, in the rare situations where the charity keeps and uses the RV donation to further its charitable mission. The RV donor then has to figure the price, based on fair market value and the RV's condition.


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