Learn the Truth About Vehicle Donations
Charitable donations for donated vehicles, can only be used by income taxpayers
who ITEMIZE on their income tax returns.
Rather than itemizing on their income tax returns, the vast majority of
American income taxpayers utilize the standard 10 percent deduction, which
does not allow any further income tax deductions, like charitable deductions.
Do you know if you are ineligible?
If you are unaware of what it means to itemize on your income tax returns,
you are most certainly not itemizing, thus making you ineligible for any
further income tax deductions like for donated vehicles.
What is itemizing?
- Itemizing on income tax returns is a laborious, daily process of keeping
close records on all expenses that the federal government has deemed legal
- Itemizing on tax returns is a lengthy process, mostly used by businesses
who have the funds and wherewithal to make it worthwhile.
QUESTIONS AND ANSWERS CONCERNING VEHICLE DONATIONS
Q-1. IF I DONATE a vehicle will I receive a check form the government for
the valuable of my DONATED vehicle?
A-1. No. That is a common misconception regarding vehicle DONATIONS. Once
the value of your DONATED vehicle is determined that value is deducted
as a charitable donation on your federal income tax return. And of course,
you must pay federal income taxes in order to receive a charitable deduction.
Q-2. Who determines the value of my DONATED vehicle?
A-2. The value of your DONATED vehicle is determined by how much it sells
for, if that DONATED vehicle sells for $500.00, or more. If your vehicle
sells for less than $500.00, then you – the DONOR – determines
the value, which must be under $500.00.
Q-3. Can anyone deduct the value of their DONATED vehicle on their federal
income tax return?
A-3. No. Only those taxpayers who itemize on their federal income tax returns
can take charitable deductions of any nature. The vast majority of American
taxpayers do not itemize on their tax returns. Instead, they take the
automatic 10 percent standard deduction, which allows no charitable deductions.
In order to itemized, one has to keep close, daily, and extensive records
as proof of their expenses, including charitable DONATIONS.
Q-4. Are charitable DONATIONS one-for-one deductions from one’s adjusted
A-4. No. Only a percentage of one’s charitable DONATIONS are deductible.
But in any case, give all of your expense data to your Certified Public
Accountant, so he or she can insure you follow the IRS regulations correctly.
Q-5. Do you offer tax receipts for those DONORS who give vehicles to your
A-5 No. Over the years we have discovered that the issuance of tax receipts
created more confusion than tax deductions. Instead, we give those people
whose vehicles we pick up real, tangible benefits, such as those listed below:
- Free towing by licensed and insured vehicle towers.
- Professional title transfers and completion of all necessary paperwork.