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you for your support, please refer AUTO LEMON - USED CAR HISTORY CHECK to your families and best friends.
donating your car?
• Is the organization tax-exempt?
Only donations made to registered 501(c)(3) organizations are qualified
for tax deductions.
be a nonprofit and not be a 501(c)(3)," says Bob Lipson, assistant
attorney general with the state Attorney General's Office. "Only
donations to 501(c)(3) groups are tax-deductible."
Check out IRS
Publication 526 — Charitable Contributions, and IRS Publication
561 — Determining the Value of Donated Property. Both are
available on the IRS Web site: www.irs.gov or by calling 800-829-3676
• Is the
charity registered with the Washington Secretary of State?
business in the state are required to register with the Office of
the Secretary of State. The state does not require a breakdown for
how much a charity makes from vehicle donations, but it does require
financial information about what percentage of revenues are directed
to programs, and how much goes for administrative costs.
For more information,
call 800-332-4483 or check out www.secstate.wa.gov/charities
• Do you
first thing you have to understand," says Dorsey & Whitney
tax attorney Alisa George, "is that you have to itemize on
your tax returns for this (deduction for contribution) to work for
you — and most people do not itemize."
• Be prepared
to deduct only "fair-market value."
value, according to the IRS, is not necessarily what is listed in
Kelley Blue Book,
considered by many as the bible for vehicle resale and trade-in
can't crank it over and it doesn't have a chassis, you better have
good proof of what it's worth," says Lipson. "You might
have a letter from a charity saying 'Thank you for your 1970 Datsun.
We think it's worth $10,000.' But that is not going to cut it. As
a taxpayer, you have to be able to prove a fair market value."
track a contribution's documentation.
Copy all receipts
and paperwork related to the transaction. Most charities will provide
prudent to have a picture of the car," says Lipson.
the paperwork until the end.
the state Department of Licensing paperwork, including title and
license-plate transfer, to a charity or its representative sounds
convenient, but it comes with potential pitfalls.
the ads I hear refers to handling 'the dreaded DOL paperwork,' "
George says. "But a title transfer is a one-page form and not
particularly inconvenient to fill out. Besides, people need this
for liability protection."
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