| 3 Easy Steps To Donate a Car and Get a Deduction |
| By: Brandon Hopkins |
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| At one time or another it will happen to just about everyone. You will get your W-2's from your employer, and sure enough you made some money! That is a good thing right? Yes and no. It is a good thing as long as you had the adequate amount of taxes deducted during the year, but what if you didn't? What if you owe the government money on April 15th? This can be a scary situation for most people, and can end up costing you dearly. What do you do if you owe the government more money than you have? Find a deduction! If you have an old car sitting around or one that isn't running, they will work perfectly. Maybe you even have a car you've thought about trading in, that will work as well. Here are 3 easy steps to an income tax deduction by donating a car (or other vehicle). 1. Do your homework. There are many sites on the internet that offer free information about donating a vehicle. Is your vehicle worth more than $500? Can you deduct the full amount? Can you donate a motorhome? It is best to get this information from a third party so that they will not have a stake in what they are telling you. A great site for information on donating a car can be found at Car Donations Online. Car Donations Online is a third party organization with no financial ties to any charity or nonprofit company. 2. Find your charity or nonprofit organization. Do you know someone with cancer? Have you had a kidney related death in your family? Do you attend a church? Do you support pro-life movements? I would recommend finding a charity that you can be proud to donate a car to. If you don't associate yourself with any charities that accept donations anywhere in the world, get out more often! There are literally thousands of charities and not for profit companies that accept donations, you will be able to find one that fits what you like. 3. Make your donation, and make sure it's deductible For the majority of people, your full donation will be deductible. For some people, that may vary by state and by income. If you need advice, consult a tax professional. Make sure you get a receipt for your donation, you may need it if you ever are audited. You may also need your receipt if you have your taxes professionally prepared. Next time you get in hot water with the IRS, just donate a car! About The Author Brandon Hopkins is the owner and founder of Car Donations Online, the most informative car donation site on the internet. He is available for speaking engagements and article writing. He may be contacted through his website at http://www.Car-Donations-Online.com . This article was posted on April 15, 2005 |
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