September 4, 2009, Newsletter Issue #165: Keep Careful Records for Vehicle Donations

Tip of the Week

Getting a tax deduction for vehicle donations requires the donor to be organized and to keep good records. Make sure the charity receiving the vehicle is registered as a 501(c)3. Otheriwse you cannot get the tax write-off.
You also will need receipts from the charity. The first receipt is for the transfer of the vehicle. The receipt will include the charity's name and identification number. The second receipt is for the resale of the vehicle if it is more than $500. The receipt is provided by the charity after it sells the vehicle.
If it plans to keep a vehicle worth more than $500, it needs to provide you with a written statement on how it will use the vehicle in its work.
Before you donate your vehicle it is not a bad idea to remove the license plate, unless state law prohibits it. This will help you avoid liability problems.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Car Donation Tip Site? Request a Tip Now!


Guru Spotlight
Heidi Splete