Tax relief for the car donations depends upon the way the charity which receives car donation using the vehicle. So it may not be possible to know how much tax can be deducted at the time of making car donation. It all depends upon the tax rules in force at the time of making car donation.
Important points for availing the tax benefit for car donation
However there are some important points need to be bear in mind while donating the car for availing the tax benefit. Value of the car which is to be donated should be ascertained first according to the used car value guidance. Necessary adjustments should be provided while ascertaining the value of the car after taking into consideration of the accessories, mileage, etc.
However it is always better to deduct the fair market value of the car which is to be for car donation. Here the condition of the car which is to be donated should be taken into consideration. It is not possible to get the full value of the car for making car donation.
For claiming tax deductions to car donation it is better to keep always authenticated records like receipts and forms connected with the car donation and the fair market value of the car which is to be donated.
Various government agencies are helping to find out whether the car is eligible for tax deduction under car donation.
Charitable instituions to donate the car
The most important point while making car donation is to find out the reputable charity institutions to donate the car. Online information about the charities for car donation will be useful to make the cause to reach the right place.It will be good cause if there are more vehicles and donating a car to some reputable charity and also to avail tax benefit.
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