Donate a Vehicle to Charity Tax Deduction 2011, 2012

You may want to speak to the charity directly. You can ask questions about where the vehicle will go. Will the charity use it for their own purposes or will it go to a family in need? This way you are sure your vehicle is used for the purpose you intended it to.

Is the Organization Qualified?

When you decide to donate a vehicle to charity you have to make sure itʼs a qualified charity. By searching Publication 78 on the IRS Web site, you can check to see if the organization you have in mind is eligible. Keep in mind that all churches, synagogues, mosques, temples, and governments are not required to apply for this exemption in order to be qualified.

Charitable donations to these places are tax deductible and they usually arenʼt listed in Publication78. You can also search for this listing in public libraries. You will want the correct name, address and the headquarter information of the charity you are donating to for your income tax deduction.

Check List for IRS Income Tax Deductible Charitable Donations

• Make Sure the Organization is Qualified

• Itemize in Order to Benefit

• Calculate the Fair Market Value

• Document the Charitable Contribution Deduction

• Speak Directly to the Charity

• Claim the Deduction the Year the Vehicle was Donated

Charitable Contribution Documentation

When you are seeking an IRS income tax deduction for a charitable donation, you must have accurate documentation. The recordkeeping requirements vary depending on the amount of the contribution and the total amount of the charitable deduction. After donating the vehicle to an eligible organization, you must receive a written acknowledgment within 30 days from the organization.

To make sure you fulfill the requirements, you can consult the IRS Publication 526. There are requirements for the types of receipts you must obtain along with the correct form you must file. Remember to attach your receipt to your income tax return.

Need Help Finding Answers?

There are many online tax preparing websites that offer help with your IRS income tax charitable donation deductions. For example, TurboTax Online can help you find the answers youʼre looking for. To learn more about donating used vehicles to charity please visit TurboTax Online.