Car donation is a very interesting way to do charity with your used car today. Many charity organizations that can help you make these car donation activities. In United States, car donation is more popular way for busy people who don’t want to waste their time for a negotiating process.

Did you know with a car donation that you will get a tax deduction? Perhaps many of you already know that donate a car will get a tax deduction, but not all of you know the details of IRS rules.

Here are some important points that you should know before claim a tax deduction from your car donation in the United States:

1. You will get a tax deduction if you donate a car worth more than $ 500. IRS (=Internal Revenue Service) require a proof that the car you donate more than $ 500. There must have a receipt of your auto donations to claim a tax deduction.
2. The IRS will only accept claims a tax deduction if you do donate your car in the IRS-approved 501 (c) (3) organization. So you should first check the credibility of your charitable organization.
3. Value of your car donation may not exceed 50% of your gross income.
4. IRS just receipts a fair market value of your car Donation. You can get a fair market value of your car donation from Kelley Blue Book. You must make a report of you car’s fair market value to the IRS.
5. You do not need proof of the sales price when your car is used for charity activities or your donation car value under $ 500.
6. If your car donation is worth more than $ 500, you must attach IRS Form 8283 to your tax return. When the price of your car donation worth more than $ 5,000, you must attach a document evaluating the value of your donation car from outside sources.



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