Donate a Car, Get a Tax Deduction, and Help a Child in Need
Wheels For Wishes believes that every child, no matter his or her health, deserves a chance to have a happy and fulfilling childhood. By donating a car, we are able to raise funds to support Make-A-Wish chapters in locations throughout the country, helping grant wishes to children with life-threatening medical conditions. A wish is an opportunity for a child to focus on something other than their medical routines, and be a kid again.
Want to get a 2020 federal tax donation?
Have an old junker car lying around that you are desperate to get rid of?
Wheels for Wishes make it possible to donate a car towards a noble cause and getting you a tax deduction at the same time.
How you can claim a tax deduction by donating a car?
Before January 2005, the IRS allowed people who donated to a qualified car donation program to take a tax deduction based on their vehicle?s market value no matter how much or how little the vehicle sold for. Determining the market value of a donated car is quite difficult and tedious, so figuring out the amount of tax deduction is equally problematic. A new tax law was passed in 2005, which has made it simpler to claim a charitable tax deduction. It basically takes the guesswork out of the equation. Take a look at what you have to do:
- You can click here to contact Wheels For Wishes and fill up the donation form. Alternatively, you can CLICK TO CALL
1-888-239-4374 to discuss details and work out a convenient time for pickup.
- Depending on the state, a title may be needed to complete the donation process. Please conduct research about your state?s title laws.
- The vehicle is picked up and sold, while the proceeds are given to your local Make-A-Wish.
- You get a 100% deductible receipt, which lets you get the maximum tax deduction possible. When the donation process is complete, Wheels For Wishes gives you a receipt right away.
- When you are filing your taxes in 2020 for last year?s car donation all you have to do is fill out a 1098-c form and attach it to your federal tax return.
- If the vehicle is solid for less than $500, you get to claim the fair market value of your vehicle up to $500 or the amount it is sold for if less than fair market value. But if the price it is sold for is more than $500, you can claim the exact amount for which the vehicle is sold (a notification is mailed to you).
What paperwork is required to donate a car?
To put it in a nutshell, a tax write off for a donating a car is a nice perk to get money back on your taxes for the non-cash charitable donation of a motor vehicle. Here is the paperwork needed:
- Donated vehicles that sell for less than $500 can generally be claimed at the fair market value up to $500, without filling out extra paperwork.
- When the value of the sale exceeds $500, you can get the exact amount the vehicle was sold at, with a 1098-c form (for motor vehicles) or a 8283 form (for general property).
- If you are looking to file a car donation tax credit of over $500 but less than $5,000, you need to fill out a 1098-c form or a?8283 IRS Form for a non-cash charitable contribution. Everything related to the tax deduction for a donated car is mentioned in section A of the 8283.
- A car donation tax credit for over $5,000 requires a 1098-c form or?8283 form, along with a written appraisal. Details are mentioned in section B of the 8283 IRS Form for non-cash charitable contributions such as car donations.
Points to remember while donating a car
- Your vehicle donation is perfectly acceptable for the year you sent in the donation form, even if you don?t get the receipt until the beginning of the New Year. The date of the contribution is the date that Wheels For Wishes received the donation form. So even if it is on the 31st of December, you are still eligible for a charitable vehicle deduction for that tax year.
- If the charity in question offers incentives (commodities) like vacation packages, in exchange for a vehicle donation, the tax receipt from that charity should state the fair market value of that commodity. The value of that commodity has to be subtracted from the value of the car donation.
Donating a car to charity for a good cause ensures you can get rid of an old junker car that is taking up space, while allowing you to get a tax deduction. Wheels For Wishes simplifies the process, and ensures a local child?s dream comes true ? you feel good about helping them achieve their goals by pursuing education and leading a happy, healthy life.
For further reading and additional information click here to learn more about what to know before donating a car to charity.