If you have decided to fill your road to generosity with a car donation to charity, then you want to make sure that you benefit from the value of the vehicle. There are specific rules that apply to car donations, especially when determining the tax write-offs you can get in return. Knowing how to determine the value of your car and making sure you get a fair return ensures that you are able to receive a return for your support to the community.
In the past, charities would let you know the value of your car. You would then be able to claim this on a tax form, in combination with a receipt. This would give you the complete tax deduction for your car donation. However, the IRS found that this was not a correct determination of value. By the year 2005, there was a change in the car donation values that many were able to receive, leading to owners taking sole responsibility for the car donation they had to have.
There are several ways that you can get the value of your car before giving it to a charity. The main way is through the Kelly Blue Book, which contains information on the fairmarket value of old cars. This specific reference is designed to take you through a set of steps that determine the value you should receive in return for your car donation. This includes basic values that change how a car is rated by the make, model and condition of the car, as well as how much value the charity can receive off the car. You can also receive an appraisal for your car from a certified professional or can look into the tax information available from the IRS to get the correct estimate for your car.
Using the correct resources and components for your car ensures that you are able to receive the tax write-off you desire. Knowing what is involved with finding a car donation value is the beginning to getting the right return for your vehicle. The specifics that are used in combination with this then are able to lead you to following the correct rules and regulations that are a part of the charity process for car donations.
