IA Donate Car
Donating a car in Iowa can be such a kind and self-fulfilling gesture that avoids a sale you may not need to go through and gives options to those that often don’t have many. There are several people that cannot afford to purchase a vehicle that they may need for transportation to work or school or for their family, therefore, you make a big impact in others’ lives when you decide to take your old vehicle and donate it to charity.
Donating a vehicle in IA is quite easy and can be done through several different charities, but the IRS suggests that you follow the right steps and ensure that the charity you are donating your vehicle to is legitimate and is going to use the vehicle in a way that you find acceptable.
**Not all charities are going to sell the vehicle or give it to a needy family. Some may utilize the vehicle for charity use, and others that do sell the vehicle will put the proceeds towards a specific sector of the charity – so you may want to ensure it will benefit those in your community more so than the workers that are in the charity.
Donating a Vehicle in Iowa
The IRS has a big influence in vehicle donations, dictating the amount you receive in a tax deduction, as well as helping you determine a credible charity to donate the vehicle to. Not all charities are created equal, and you may find that some aren’t as legit as others.
Starting the donation requires that you follow wise steps to secure the donation and protect the donation. After all, you want to be sure that you are getting the chance to offer the vehicle for a reason that is more adequate to you.
1. Research the charity you plan to donate the vehicle to thoroughly. There are several different resources by which you can find those charities rated well by the IRS.
2. Determine your tax deduction qualifications, which differ by state and vehicle.
3. Determine your vehicle’s value, however, the deduction you receive is based on the sale of the vehicle by the charity.
4. Determine the steps you must take in transferring the vehicle out of your name with the DMV.
There are also questions that you should ask concerning the donation, whether you research the answers online or ask the charity that you are donating the vehicle to.
1. How will the vehicle be used after donation?
2. Where are profits from the vehicle going – to the community or the administration of the charity?
3. What is the efficiency rating assigned to the charity?
4. What charity programs and services are benefiting from the sale of the vehicle by the charity?
If you want more information about vehicle donations and the charities that accept vehicle donations, you can visit http://www.irs.gov/pub/irs-tege/pub4303.pdf, which features the IRS Donor Guide to Vehicle Donation.
Resources to Locate Right Charity
· America’s 200 Largest Charities by Forbes: http://www.forbes.com/2010/11/16/forbes-charity-200-personal-finance-philanthropy-200-largest-charities-charity-10-intro.html.
· BBB: http://welcome.bbb.org/
· BBB Wise Giving Alliance: http://www.bbb.org/us/charity
Transfer Title on Donated Vehicle
You can find out what processes to follow to transfer the vehicle’s title from your name at 4DMV.com’s title transfer pages, which you will determine based on the seller’s responsibility. However, you should still contact the DMV as vehicle donations are different from sales, therefore, could require different steps.
Tax Credit for Donating Your Vehicle
The amount that donors are eligible for through vehicle donations in tax credits is different than ever before. The IRS has imposed stricter guidelines concerning tax deductions from donated vehicles, which has changed from a claim of the full value to a portion of the sale of the vehicle after donation by the charity.
1. You will receive the amount of deduction by charity no more than 30 days from transfer of ownership.
2. If the charity sells the vehicle, your deduction amount is sent within 30 days of said sale.
3. You are sent an acknowledgment by the IRS determining your deduction amount.
There is a $500 deduction limit imposed by the IRS, however, there are circumstances that could cause the deduction to increase, at which point you must provide:
· Legal name and TIN
· Vehicle’s VIN
· Donation Date
· Charity statement of verification that no goods or services were exchanged in return for the vehicle, a description of those that were if applicable, or a statement that verifies all goods and services received were intangible as well as religious.