Helpful Answer: Car Donation and Tax Benefit

.
This question is found in AnswerBag.com: What is the tax benefit for me to donate my vehicle?

Yup, we deserve a tax deduction when we donate our old or used car to the charity. According to the new rule, the amount of tax deduction we can claimed now is limited to gross proceeds of the auction (or sale) for that car. Previously, car donor's can claim up to the car's fair market value on their tax returns. Our chosen charity would then send us the paperwork, and the amount stated is the amount where we can deduct from our tax.

There also a limit when we want to claim a higher tax cut. For vehicle that worth $500 and more, we need to enclosed proper written acknowledgment from our charity of choice. Plus, to be elligible for the tax deduction from our car donation, we need to itemize our car sale (get the receipt) and attached our written acknowledgment together~

Links:

• AnswerBag.com : Every question deserve a great answer.

DonateaCar: "If we don't ask, we might never know~"   ;-)

:.