One of the best parts
of donating your car to charity is the tax deductions your act of
generosity will earn you. Who wouldn’t want to donate and
get thousands of dollars deducted from his taxes?
However, you should
note that the IRS has made some significant changes to the way you
can claim deductions from your recently-donated car. Here are a few
things you need to remember when donating your car to charity:
Qualified Nonprofits
Make sure that the
charity you are donating the car to is qualified under IRS
guidelines. If not, the IRS will not allow you to claim even a
dollar’s worth of deductions. Be thorough and check the IRS website
for a list of accredited nonprofits.
Get a Receipt
If your car is worth
more than $500, the IRS will ask for a receipt to prove how much the
charity got for your car. You get this receipt from the charity or
the car donation processing center once they have sold it.
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