Car donation charities qualifies
Your city councilman's campaign organization and your hobby club may be nonprofit organizations, but donating a car to them won't give you any tax benefits. Only "qualified" charities can provide those for you. A qualified charity is one that has been approved by the IRS as an "exempt-status" or organization, Midwood says. Most organizations will state in their advertising or receipts that they're a if indeed they are one, she says. "If you're not sure, ask." How To Deduct Fair Market Value These are the four IRS rules under which you can get the maximum deduction (the fair market value) of a donated car: 1. When a charity auctions your car for $500 or less, you can claim either the fair market value or $500, whichever is less . 2. When the charity intends to make a "significant intervening use of the vehicle." This means the charity will use the car in its work, such as delivering meals to needy people. 3. Whe...