On a more serious note, the IRS has changed the regulations for claiming a deduction when you donate a car to charity. If you donated a car last year, you need to understand the new donate car charity rules.
The new IRS regulations are pr…etty simple to understand. For non cash donations exceeding $500, if you donated a vehicle to a qualified charitable organization, the amount you can deduct is the exact dollar value the charity receives when it resells the vehicle. Put another way, you can no longer claim the blue book value of the car.
To donate a car, you simply arrange for delivery to the charity. The charity will then resell the car at some point in time. The organization will then will send you correspondence detailing the gross proceeds from the sale of the vehicle.
This correspondence should, but is not required to, come to you as Form 1098-C. Yes, another form. Simply take the deduction for the gross proceeds on Schedule A and attach the Form 1098-C to your tax return. If the charity sends you a written letter, attach that to your tax return.
Please call the office or visit our website for further information.
Tags: Car Donations
Written by: Doug Rodrigues