Car Donation tax deduction

Step 2 - Receiving a tax deduction for your car donation

In many cases vehicle donors are eligible for a tax deduction for their car donation. Below is some basic information to determine if you are eligible for the tax deduction or if the charity you choose to donate to qualifies as a "charity". It is not legal or tax advice, just general information. You want a professional opinion then hire an accountant or a lawyer.

I have focused on information for donation in the U.S.A.

Are you able to deduct this donation?

If you are interested in using this donation as a tax deduction best thing to do first is find out if you quality and how much you can deduct.

According to the IRS "You can deduct contributions to charity only if you itemize deductions on your Schedule A of Form 1040.

You must take into account certain limitations on charitable contribution deductions... "

It is not too difficult and any tax professional can assist in the paper work.

The IRS has information about car donation tax deduction.

Determining if a charity or organization qualifies for tax exempt status

This is step 2. You know you can claim your donation and know the maximum value you are able to deduct. Next you have to determine if the charity or organization you are considering donating to are able to claim tax exemptions. If the cannot you aren't able to claim the donation either.

A basic guideline is if they are a educational, religious or charitable then they likely have tax exempt status. You can ask the charity or even better you can download a list that will contain many know tax exempt charities. List of Organizations

This is an incomplete list of organizations. However there is a contact number you can call to verify the status of a potential charity.