Donating your car for a tax credit

Donating your car to charity for a tax deduction is very easy. Contact Wheels For Wishes - if you would like to help your local Make-A-Wish and get the maximum tax deduction for your car donation it just takes a few short minutes to fill out the online car donation form.

Before you donate your car to get a tax credit you should probably check out the charity you would like to donate your car for a tax credit, see if you will get a tax credit for your donation, find out the tax donation value of your car and see what the responsibilities are as a donor to that charity.

Donating your car for a tax credit was once straightforward. You can claim the old car's fair market value refer to the Kelley Blue Book to get an idea of the donated car's value, give it to your favorite charity for a tax credit and then drive off with a tax credit equal to the amount of your donation. Just keep in mind the $500 threshold on all vehicular donations.

This valuation ceiling comes into play when a charity sells a donated vehicle. In this case, just how much a taxpayer can deduct depends on the amount the sale nets.For example, you donate your old station wagon that's worth $1,000. Under the old rules, that would be the amount you could deduct. But now, if the charity turns around and sells your donation for $800, your tax deduction for your car donation is limited to the lower sales price.

Whatever charity you choose must give you the Internal Revenue Service-allowed donation amount within 30 days.

If you haven't been notified by the charity call them and ask that they send, or resend, you the donation specifics. Plus, you now must include a copy of the acknowledgment, IRS Form 1098-C or an IRS acceptable substitute form that is sent to you and copied to the agency, with your tax return. Previously, such documentation was generally only kept by the taxpayer in case the IRS questioned a claimed deduction.