Car Donation Process Tips And Legal Method

                TIPS FOR CAR DONATION  PROCESS TO CHARITIES 

A charity that uses a denoted vehicle car for transportation or  hauling goods obviously benefits directly from donation.However , in so many cases car will be sold en masse, either by charity it self or a by a dealer to raise the funds for charity .In case of dealer ,the charity receives a flat fee per car, sometimes as little as $45 per car.

LISTED BELOW ARE TIPS FOR DONORS WHO WOULD LIKE TO DONATE A CAR TO CHARITY .  LEGISLATION IN 2004 LIMITS THE DONOR`S TAX DEDUCTIONS FOR CAR DONATIONS TO PRICE AT WHICH CHARITY SOLD THE CAR.

To receive the maximum tax deduction on  car donation ,give it to the charity that will use the vehicle in its operations or give it to the person in need.Otherwise,your tax deduction will not be based on the fair market value,but it will be limited to the amount of money that charity receives for the sales of your car.See car donations Taking tax payers rid for more .
Make sure that charity is eligible to receive tax deductible contributions .Ask for a copy for your records of the organisations, IRS letter of determination which verifies its tax exempt  status. Be sure that you get receipt for charity car donation .
Be aware that non-cash donations are one of the most common triggers to an audit by IRS ,so you will want to document the value of a car and receive the documents and keep records for it .
If the car is worth than 500$ the donor must complete Section A of IRS FORM 8283 and attach it to their tax return .Donors are require to fill his/her tax return a written acknowledgement from the charity .
If the charity sells the car,it must provide donor with the certification that the car was sold at arms length between unrelated parties and the sale price of the car within 30 days.
In this case the donors tax deductions will be limited to the total amount of charity sold the car for .If the charity does not sell the car ,it must provide the receipt to the donors within 30 days of sale .The charity may also required provide certification donors stating how it plans to use or improve the car  and stating that it must promise not to sell or transfer the car .Penalties are imposed on charity who violated the rules .
If the car worth 5000$ or more,then an independent appraisal is necessary .The donor must fillout the SECTION B of FORM 8283 .For cars worth less than $5000 ,use the Kelley Blue Book,The Hearst Black Book or a guide from the National Auto Dealers Association ( NADA) to determine the market value .Make sure that you use the correct figure for date,mileage,and condition of your car.Picking the highest figure for your car  model without taking into account others factor may not pass muster with the IRS.
Take pictures of the car and save receipts for new tires or other upgrades to verify  its value.Remember its the donor, not the charity who is obligated to value the car and and who will pay the penalties if the IRS challenges finds your figure innaccurate