Following the IRS Rules for Car Donation
Posted on 16. Oct, 2009 by Charity Donation in Charity Donate
Car donation has been one of the popular ways of contributing towards welfare of the society and also, earning the tax deduction benefit in return. A car donor must be familiar with the IRS rules for car donations to make out most out of the procedure. In general, the official website of IRS provides information on the charities recognized by it. In order to earn tax advantage, one needs to donate the car to one of the IRS approved charitable organizations.
Next, the car donor must also know that gross proceeds from car donation are deductible, if the charity makes less than $500 by selling the car. In the case of exceptions, the value of tax deductions can be calculated using fair market price value, if the charity keeps the car for its own use. In any case, the charity must provide you with acknowledgement within 30 days. For more information on documents required to file tax deduction benefits after car donation, you can go through the IRS Publication 526 and 561.
