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Most people assume that donating a car to charity is something only the rich use to reduce their tax burden. Anyone can file a tax return with itemized deductions if they take the time and effort required to do so. You will be responsible for keeping any receipts to substantiate your deduction claims, donating a car to charity is now easier than ever.

Although it is not the main source of their donation intakes, charity organizations have relied on donated items for quite some time. The General Accounting office released a report in 2003 showing that car donation accounted for only around six per cent of charity organizations donations.

The self-employed are in an especially good position to take itemized deductions of monies turned back into the business as well as legitimate car donations. A charity that is sanctioned by the IRS and has a legitimate non- profit tax ID number should be more than able to provide you with the forms you need to make your deduction with the same confidence as any other type of deduction you save a receipt for.

It is not unusual for a taxpayer to decrease their tax bill by up to forty per cent by taking the time and effort to keep accurate records.

Donating a car to charity can be useful as a way of reducing your taxable income, thereby placing you in a lower tax bracket. For this reason, car donations to charities tend to increase as the end of the financial year approaches. If done correctly, the savings can sometimes be substantial.

As the charity sells the car onto the scrap or wholesale markets, the amount received will usually be nowhere near the Kelley Blue Book value for tha model car. If the amount recieved is more than $250, an accurate receipt showing the exact amount of the car donation value.

The accountant you usually use to prepare your taxes will be able to give advice in regards to your particular circumstances.