Today the act of car donation has gained popularity for one primary reason. The sizable tax benefit you can earn by donating your unused vehicle is exactly the reason why people are interested in submitting their car to charity. It is crucial to deduct the fair market value of your car while filling your tax return. You cannot certainly claim the full value of the car.
Do not forget to keep good records while claiming a tax deduction for your car donation. Gather all papers required for the car donation in New York City and a copy of its fair market value will also be required. Store them in a secure place for the future.
If you are determined to donate your car to charity, then be sure to do some research. This will effectively save you time and money. The first thing you need to do is to contact the IRS. They will recommend you to contact the people involved with donation programs or the ones who are running it. Do not hesitate to ask them as to whether they are charity officials or any private group acting for the charity. If possible, keep the conversation on record. Remember, a good amount of research not just saves you time but also makes the entire donation process much easier and more convenient than you can ever imagine.
While researching, ask yourself what you are looking for in car donation services.If you wish, you may avoid charitable organizations that charge too high for their car donation programs. The high costs mean less money for the charity’s programs and services. This is not what the best charity is looking for. So again take time and do your research before you decide anything.
Once you are determined that you want to donate your car to charity, the next thing you need to figure out is the fair market value of the car that you want to donate. If possible, you can take the car to any nearest auto dealer shop to have the fair idea about the fair market value of the car.
Remember, there are many organizations, especially used car dealer and fundraisers that organize car donations in New York for profit. Most of them keep the largest share of the proceeds from your car donation, while a meager amount nearly 10% or 20% go to the charity. So again, before you donate your car, be sure to ask the charity about what percentage of the proceeds collected from charity will be used for the welfare of the underprivileged community.
For different charity have different purpose, it is important to know the end goal of the charity you have selected to give your car. Simply ask the officials regarding the same to steer-clear any doubt you have.
Last but not the least, make sure that charities you will select are fully licensed to legally process your car donation. Each state has is own law when it comes to charity. Make sure that the charities follow such legalities relating to the car donation.Peter Thronton is a passionate writer and a regular blogger. He has years of experience in freelance writing. His recent write-up is a good read on car donation in New York.Article Source: http://www.thearticlesbase.com/important-facts-about-car-donation-in-new-york/