Car Donation
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Rejoice will accept donations of all types of vehicles: older models, classics or lightly used. The vehicle must be in a running condition.
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One important determination if a car donation is right for you is the "tax-exempt" status of the charity you have chosen. To be eligible for a tax donation, the car must be donated to a tax-exempt nonprofit organization, most commonly a 501(c) (3) organization created for charitable, educational or religious purposes.
Rejoice Lutheran Church is a 501(c) (3) charitable organization by the IRS, eligible to receive tax deductible contributions. Rejoice's tax identification number is 41-1758613.
Determining the Tax Deduction Value
The exact amount of your tax deduction is dependent upon what Rejoice does with your vehicle, and the value of the vehicle. Here’s how it breaks down:
Rejoice Lutheran Church is a 501(c) (3) charitable organization by the IRS, eligible to receive tax deductible contributions. Rejoice's tax identification number is 41-1758613.
Determining the Tax Deduction Value
The exact amount of your tax deduction is dependent upon what Rejoice does with your vehicle, and the value of the vehicle. Here’s how it breaks down:
One important determination if a car donation is right for you is the "tax-exempt" status of the charity you have chosen. To be eligible for a tax donation, the car must be donated to a tax-exempt nonprofit organization, most commonly a 501(c) (3) organization created for charitable, educational or religious purposes.
Rejoice Lutheran Church is a 501(c) (3) charitable organization by the IRS, eligible to receive tax deductible contributions. Rejoice's tax identification number is 41-1758613.
Determining the Tax Deduction Value
The exact amount of your tax deduction is dependent upon what Rejoice does with your vehicle, and the value of the vehicle. Here’s how it breaks down:
Tax Filing Impact
If you itemize deductions on your income tax return, it may be possible for you to claim a deduction for your car donation. The deductible amount of your vehicle donation is directly related to the selling price of your vehicle.
If your donated car sells for less than $500 you can take a tax deduction equal to the fair market value of your donation up to $500. Fair Market Value is loosely explained as the "Blue Book" or "Guide Book" value of your vehicle. (Refer to Kelley Blue Book, NADA Guides or Edmunds)
Rejoice Lutheran Church is required by IRS to send the vehicle donor a contemporaneous written acknowledgement (receipt) within 30 days of the vehicle sale. This receipt must include the following:
Car Donation Tax Tips:
Itemized Deduction
For a car donation to be eligible for a tax deduction, the donation must be made solely for charitable or public purposes and the donor must itemize deductions (such as medical expenses and charitable donations) on Schedule
A of IRS Form 1040. Those taking the standard deduction rather than itemizing will not receive a deduction for their donation. Generally, it is worth the effort to itemize if the total of the itemized deductions for that tax year is more than the standard deduction one is entitled to.
Note: The tax benefit you receive for donating your car is a deduction, not a tax credit. This means that the amount of income that the government will tax you on is reduced by the deduction amount, resulting in lower taxes for you.
Rejoice Lutheran Church is a 501(c) (3) charitable organization by the IRS, eligible to receive tax deductible contributions. Rejoice's tax identification number is 41-1758613.
Determining the Tax Deduction Value
The exact amount of your tax deduction is dependent upon what Rejoice does with your vehicle, and the value of the vehicle. Here’s how it breaks down:
Tax Filing Impact
If you itemize deductions on your income tax return, it may be possible for you to claim a deduction for your car donation. The deductible amount of your vehicle donation is directly related to the selling price of your vehicle.
If your donated car sells for less than $500 you can take a tax deduction equal to the fair market value of your donation up to $500. Fair Market Value is loosely explained as the "Blue Book" or "Guide Book" value of your vehicle. (Refer to Kelley Blue Book, NADA Guides or Edmunds)
Rejoice Lutheran Church is required by IRS to send the vehicle donor a contemporaneous written acknowledgement (receipt) within 30 days of the vehicle sale. This receipt must include the following:
- The gross selling price of the vehicle (if sold for greater than $500)
- Year, Make, Model and Vehicle Identification Number
- A statement that the vehicle was sold at arm's length between two unrelated parties
- And a statement that no goods or services were received in return for your contribution.
Car Donation Tax Tips:
- Be sure that you file the written acknowledgment (receipt) provided by Rejoice. If the total deduction you are claiming for a donated car is $250 or more you will need to keep at record of the amount.
- The IRS will only allow a deduction for the fair market value of the car. This can be found on the tax receipt mailed to you for your donation.
- If the car is worth more than $500, the donor must complete Section A of IRS Form 8283 and attach it to their tax return.
- If the car is worth $5,000 or more, an independent appraisal is necessary. The donor must also fill out Section B of IRS Form 8283. Take pictures of the car and save receipts for new tires or other upgrades to verify its value.
- Always consult your tax adviser or the IRS for more information about how you can claim charitable deductions. The IRS can answer your tax questions and can provide tax forms, publications, and other reading materials for further assistance. IRS materials are accessible through the Internet Car Donation Tax at www.irs.gov, through telephone ordering at (800) 829-3676, and at IRS walk-in offices in many areas across the country.
Itemized Deduction
For a car donation to be eligible for a tax deduction, the donation must be made solely for charitable or public purposes and the donor must itemize deductions (such as medical expenses and charitable donations) on Schedule
A of IRS Form 1040. Those taking the standard deduction rather than itemizing will not receive a deduction for their donation. Generally, it is worth the effort to itemize if the total of the itemized deductions for that tax year is more than the standard deduction one is entitled to.
Note: The tax benefit you receive for donating your car is a deduction, not a tax credit. This means that the amount of income that the government will tax you on is reduced by the deduction amount, resulting in lower taxes for you.
