GUNOTSAV-8 TIME FERFAR PARIPATRA

Although advertised as an easy way to dispose of an old car, donors need to fulfill certain post-donation requirements to qualify for the tax deduction. such as obtaining a written acknowledgment of the car's subsequent sale by the charity,and itemizing tax returns instead of taking the standard deduction.
For vehicles valued at less than $500, the deduction amount comes from the donor's own estimate of the car's value, even if the charity receives less money from its sale. Deductions greater than $500 are limited to the proceeds of selling the vehicle, usually at auction. The U.S Internal Revenue Service advises that starting in 2005.
The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a claimed value of more than $500 changed at the beginning of 2005 as a result of the American Jobs Creation Act of 2004. In general, that Act limits a donor’s deduction to the amount of the gross proceeds from the charity’s sale of the vehicle.

For vehicles valued at over $500, taxpayers are required to attach the charity's written acknowledgment to their tax return.

CLICK HERE PARIPATRA

Tag : PARIPATRA

JPJADAV