Know the tax exemption for your car donation

July 4, 2014 in Car Donation

When you wish to help charities by donating your cars, you might think the process is simple that can end within a single phone call. The major complicated scenario you need to check out is whether your donation reaches to the right place. Know how to identify the trusted charities and the other tax details while donating the vehicle.

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You can find many phone numbers and websites when you browse for charities.  When you decide to contribute your valuables to those unseen NGOs, there are chances to fall into some fake organizations. So it is better to find a charity that is located in your own local area for extending your support. The trustworthy charity will have a legal documentation and furnish a 501(c)(3) status to your donations. You can claim tax deduction for your donations through this status and can also inspect the status of tax exemption details through www.irs.gov or by ringing at (800) 829-3676. If you have any complaints about NGO such as not giving acknowledgements or proper bills for your contributions you can write to IRS examination division.

You need to fill up an additional form 8283 along with the IRS form if you’re claiming more than $500 as a deduction for your donated car and the written appraisal is must when your deduction exceeds more than $5,000. Make sure you receive a written acknowledgement from charity that includes charity’s name, description of the car and a policy statement.