| Every year many people think about maximizing | | | | Avoiding intermediaries or middlemen is a good |
| their tax deductions through various donations. | | | | idea. There are various organizations that offer to |
| One of these potential donations is a car donation. | | | | 'help' you in your car donation. The problem usually |
| Donating your car for a tax deduction can be a | | | | is that these middlemen take a cut of the value |
| win-win situation. It sure sounds like it doesn't it? | | | | and give the rest to charity. The charities and you |
| You get to save on taxes and help a charity out. | | | | both get a raw deal. To avoid this, visit the |
| But, you have to keep a few things in mind | | | | charity and donate the car in person. |
| before you venture down this path. Keep the | | | | 3) Keep track of all the details |
| following pointers in mind and you will be on the | | | | Make sure you have accounted for any |
| right track | | | | outstanding tickets and get the title transferred to |
| 1) Pick the right charity | | | | a new charity. Report the transfer to your local |
| Not all charities can accept a car donation. | | | | DMV. Don't just hand over ownership without filling |
| Research the potential charities online to see | | | | out the charity donation papers. You should know |
| whether they have the right reputation and to | | | | the market value of your car and what your |
| get an idea of their track records. Another two | | | | charity decides to do with the car. If it uses the |
| websites would be Better Business Bureau and | | | | car for its daily activities, then you will be able to |
| the Charity Navigator. Besides reputation, you | | | | deduct the fair market value from a reliable |
| should also confirm that the charity is an | | | | source such as Kelly Blue Book. Instead, if the |
| IRS-approved 501(c)(3) organization. Usually your | | | | charity decides to auction or sell off the car you |
| synagogue, church, temple or mosque qualify. It's | | | | have to get that information and mention the |
| important to confirm anyways. You should check | | | | amount on the right form. If the car sells or is |
| out the IRS's website and search for qualifying | | | | worth more than $500, you will have to file IRS |
| non-profits. Tip: If you type '78' in the search box | | | | Form 8283. Like we mentioned earlier, keep a |
| on the IRS home page you will find the right page. | | | | copy of the donation receipt and the title change. |
| 2) Donate directly to the charity | | | | |