Most people look forward to getting their tax return, but one of the downsides to filing taxes is that you may find yourself owing the taxman come April 15. What do you do when you realize that you not only owe money, but you owe more than you can pay at the time?
The answer is: charitable deductions.
Did you know that charitable contributions are deductible from your taxes? Most people only think of donations as being cash, and giving away more cash that you don't have won't help you in this case. However, there is another option available - donate your car. Do you have an old car sitting around (even if it doesn't run) that you're not using or are having a hard time selling? If so, you're in luck! Many charities accept car donations, regardless of condition, and this contribution can be deducted from your taxes. There are a few steps you need to take in order to claim a deduction by way of car or other vehicle donation:
First thing you need to do is find out how much value you can get out of the car or other vehicle you plan to donate. Even old cars in poor condition are often accepted for donation, as they can still be sold for parts or scrap. There are sites that specialize in this kind of information, many of them free.
Find a charity or non-profit organization you believe in. It is one thing to donate a car simply for the tax relief, but find a charity that you feel strongly about to donate your car to. You won't only be helping yourself, you will be helping others that you care about.
Thirdly, make your donation - making sure that it is tax deductible. In most cases this will be the full value of the vehicle (actual market value, not Blue Book), but state laws may vary for state income tax purposes. If you have any question about this, you should see your tax advisor.
To prevent over-estimate, the IRS requires people who donate their car to produce a document from the charitable organization specifying the resale price of the car after the car is sold off. Automobiles with retail values up to $500 are exempt from this rule. In any case, make sure you get a receipt detailing your car donation. Requesting a receipt may also be necessary if you have your taxes prepared by a paid preparer.
Donating a car may sound like a big undertaking, but it's not. You can accomplish three things at once - getting rid of an old car that is taking up valuable space, helping your favorite charity, and getting a deduction on your income taxes. If you have an old car and want to reduce your tax payment, donating a car might be right for you!
For more information on car donation, please visit car donation for charity and tax relief.
Wood Dale Chicago prom limo .. Lockport Chicago limo O’HareYou've been feeling uneasy (perhaps even guilty) because you've failed... Read More
Q: I was contacted by the city tax collector to... Read More
The IRS has obtained civil injunctions against more than 100... Read More
"Deducting Meals and Entertainment"O.K. You've been working really hard on... Read More
All states also have their own tax system. Typically there... Read More
Each year, the IRS lists various scams taxpayers get caught... Read More
Reservists called to active duty and enlistees in the armed... Read More
As your business grows, you are going to need help.... Read More
Knock-Knock-KnockWho's there?The IRS!The next quarterly payment of estimated income tax... Read More
If you paid someone to care for a child so... Read More
Anyone who is closely related to an accountant knows that... Read More
"What we've got here is a failure to communicate." ... Read More
Just image, you are a small manufacturing company, business has... Read More
If your business has employees, you must pay employment taxes.... Read More
Beware of advertisements that claim to settle tax debts for... Read More
Your days as an entrepreneur and businessperson are consumed with... Read More
Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More
OverviewIn the Pre-Budget Report of December 2003 the Chancellor Gordon... Read More
Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More
Deduction of Refinance PointsAny points that you pay in the... Read More
If you have employees, you are responsible for paying a... Read More
It's a moment every person dreads. You pick up the... Read More
The 100 year old investment-banking firm of... Read More
While accountants are reaching for aspirin, millions of Americans are... Read More
April 15 - The most dreaded day of the year... Read More
Antigo wedding limo ..Strategic planning throughout the year results in a minimal tax... Read More
NOTE: This is the first in a series of 5... Read More
Each year, the IRS lists various scams taxpayers get caught... Read More
Employers often ask employees to designate the amount of tax... Read More
The end of tax filing extensions is quickly approaching. What... Read More
All tax authorities to e-commerce transactions should investigate the record... Read More
Anyone who is closely related to an accountant knows that... Read More
If you have employees, you are responsible for paying a... Read More
You're at your office, or home, and the doorbell rings... Read More
No one likes paying tax. Everyone understands that tax is... Read More
The knock on the door from a Tax Inspector is... Read More
A Federal Tax Lien (FTL) is a legal instrument that... Read More
Reservists called to active duty and enlistees in the armed... Read More
Recently, I stumbled across a concept that could change your... Read More
Let's assume that you would like to begin saving for... Read More
As your business grows, you are going to need help.... Read More
Background issues of access to recordsTo assess the records at... Read More
If you are a Small Business Owner or Self-Employed Person,... Read More
On June 3, 2005, the IRS released guidance on charitable... Read More
Over 50% of marriages end in divorce in the United... Read More
Q: I was contacted by the city tax collector to... Read More
You've been feeling uneasy (perhaps even guilty) because you've failed... Read More
While there are many equally valid reasons to incorporate, saving... Read More
Assume a buyer in Pakistan downloads software from the Internet... Read More
The means and types of businesses have transformed with advent... Read More
Tax |