Essential Car Donation Tips Everyone Should Know

You’ve probability heard of car donation and have seen their ads to donate your old car to charity and get the tax deduction in return. It’s quite a good idea to help someone and get the reward in return. It is not the case every time as car donation business attracts scammers and some of the charitable business organizations are scammers themselves.
In earlier years car donors could subtract the market value of their cars on taxes. Unfortunately, in many cases, the fair market value of car wasn’t even near to “book value” of car, so some donors were actually getting artificially high breaks on their taxes. But, since the laws have changed now, we’ve got some benefits to get rid of it.
Here are few tips that you would like to follow before donating a car to someone. So let’s begin.

1-    To receive the maximum tax deduction on your car donation, give it to charity that use your car in personal operations or give it to person in need.

2-     Be Aware of non-cash donations, you might want to keep the records of the value of car and its documents

3-    Be sure that you get the receipt of the charity of car donation.

4-    If the car is worth more than 500$, you must complete Section-A of IRS form 8283 and attach it to your tax return.

5-    Take picture of your car and take receipts of upgrades along with you

6-    Keep your records secure and updated, no one wants to get caught by Tax Authorities for some minor mistake.

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