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Used Car Value
- Vehicle Donation
Donate Car Online is a unique national Charitable Organization that
provides “gifted” donated vehicles to struggling families, other
Charitable Organizations and many others in the furtherance of
Charitable causes.
By donating to Donate Car Online you can still deduct the full "Fair
Market Value" of your vehicle (in most cases with running or repairable
vehicles) because we utilize all running or repairable vehicles to
benefit charitable programs.
Beginning January 1, 2005, new federal tax legislation governing vehicle
donations goes into effect. The following is a summary of the new
legislation contained in (HR 4520).
Under the new law, allowable deductions for charitable contributions of
vehicles, boats and airplanes (collectively referred to as "assets" in
this summary) for which the claimed value exceeds $500 will depend how
the asset is used by the recipient charity. If the organization sells
the asset without any significant intervening use or material
improvement, the donor’s deduction is limited to the gross sales
proceeds received by the charity.
But, if the Charitable Organization uses the asset in direct furtherance
of its charitable purpose the donor may deduct the "fair market value"
of the asset. (According to the IRS, the donor, not the recipient
charity, must determine the "fair market value" which the IRS describes
as the price that a willing buyer and willing seller would agree upon if
neither were pressured to do so. Assistance with vehicle values can be
found at:
Kelly
Blue Book
Nada Guides
Intellichoice
Manheim Gold - Classic or collector cars “Golden Book”
(Although Donate Car Online cannot legally determine the value of a
donated vehicle, as the donor, not the recipient charity, must determine
the "fair market value” the above resources are provided for your
information and consideration)
Examples: If a vehicle with a "fair market value" of $3000 is donated
directly to the non-profit charity and the organization sells the
vehicle for $2000, the donor can only deduct $2000. But, if for
instance, the organization provides the vehicle to a disadvantaged
person, the donor may deduct the full "fair market value" of $3000.
Substantiation requirements when the claimed value exceeds $500 are
as follows: No deduction is allowed unless the donor receives a written
acknowledgement from the charity.
That document must include the name and taxpayer identification
number (social security number) of the donor and the vehicle
identification number (or similar number) of the asset.
Additional documentation is required but is dependant on how the
asset is used by the charity: In the event the charity sells the asset
without any significant intervening use or material improvement, the
charity must send a written acknowledgement to the donor within 30 days
of the sale certifying:
(1) That the asset was sold at a transaction between unrelated parties.
(2) The amount of the gross sales proceeds
(3) Include a warning that the deduction is limited to the sales
proceeds.
If the Charitable Organization intends to make significant use of the
donated asset (such as providing a donated vehicle to a disadvantaged
person) or make material improvements, the required written
acknowledgement must be provided within 30 days of the contribution and
must certify:
(1) The intended use and duration of such use or the material
improvements to be made.
(2) That the asset will not be transferred in exchange for money, other
property, or services before completion of such use or improvements.
Overall, by donating your car, truck, boat, motorcycle or other vehicle
to donatecaronline.org you can be assured that your donation and/or its
proceeds will benefit worthy causes in the community. Online Car
Donation
takes all steps necessary to provide responsible stewardship of your
gift and will assist you in any way possible. For more information
please feel free to call us 888-228-7320 toll free or
email your inquiries for prompt
care and response.
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