Tax Donation Guide: Vehicle Donations Yield Tax Deductions
Online, April 2, 2010 (Newswire.com) - Tax season is quickly coming to a close and while taxes are top of mind, it's important to know that MERS/Goodwill makes donating a car to charity a simple and rewarding task. Although the regulations and rules surrounding the donation of a vehicle might be confusing, MERS/Goodwill provides expert guidance and all of the necessary paperwork needed to file federal income taxes.
"There are many mixed messages about eligible tax deductions when donating a vehicle to charity," said Roni Vetter director of the MERS/Goodwill Auto Donations program. "We do our best to make sure donors understand the IRS regulations so they can receive their best tax deduction within the guidelines of the IRS. The donor gets the tax deduction and MERS/Goodwill receives the revenue from the sale of the donated vehicle to help fund our many job training and job placement programs in the community."
The eligible tax deduction of a donated vehicle is based on the gross sale of the vehicle. If a vehicle sold for more than $500 the donor is eligible to use the sale amount as their tax deduction. However, if a vehicle sold for less than $500, the deduction would be the lesser of either the fair market value or $500.
In addition, understanding the fair market value of a vehicle is key to donating a car. Fair market value is defined as what a willing buyer would pay and a willing seller would accept for the vehicle "as is" when both parties are compelled to buy or sell, and both parties have reasonable knowledge of the relevant facts. Tools for vehicle pricing such as Kelly Blue Book and N.A.D.A. are common means of determining fair market value. For more information on the specific regulations for donating vehicles, go to the IRS publication online: http://www.irs.gov/pub/irs-pdf/p4303.pdf or call
(800) 829-1040.
If you are interested in donating your vehicle to MERS/Goodwill, check out www.mersgoodwill.org or call at 314-241-3464 or 1-866-MO-4CARS.
About MERS/Goodwill
MERS/Goodwill is a non-profit agency that provides for the vocational needs of individuals who have barriers to employment through disability or economic disadvantage. Annually serving more than 11,000 people, the organization operates 38 service centers in 53 counties in the bi-state area. Revenues from 40 Goodwill stores and the auto donation program assist with funding MERS/Goodwill job training and employment services. MERS/Goodwill is a proud member of the United Way. For more information about MERS/Goodwill or to find a Goodwill donation center near you, call 314-241-3464 or visit www.mersgoodwill.org.