 
Donating cars to charity is a great way to save on your tax return, as well as helping someone less fortunate. With the addition of a new tax law, the IRS now determines the full market value of your vehicle! While trading in your used Buick at Maryland Buick dealership in when purchasing a new Buick is a smart choice, you now have the option of donating your car to charity and receiving full market value deductions on your tax return.
With the creation of this new law, effective January 2005, the full price received for the sale of the used Buick can be deducted from your taxes! In the past, you could only deduct up to a certain amount from your taxes which made using your Buick as a trade-in a much smarter choice. In most cases you will still receive more value for your used Buick if you trade it in at a Maryland Buick dealership but donating your car has become a much more attractive alternative.
Another nice feature if this new tax law is that there is less risk involved. In the past, if you overstated the value of your donated Buick car on your tax return, you would get in trouble and receive penalties. With the new tax law, you don’t have to worry about it. The IRS will let you know exactly the amount you may deduct, eliminating guesswork, saving you time, and removing any risk.
The new tax law has a system that works like this: The IRS now lets you claim a deduction of either the value of your car up to $500, or if it’s sold for more than $500, they mail you a notification stating the exact price at which it was sold; this is the price you put on your deductions. Whatever the case, you get a receipt at the time your vehicle is picked up, just like with your Maryland Buick dealership . Now, instead of taking your car and giving it to the junkyard, you can make a nice tax deduction.
If the vehicle is sold without significant repairs or preparation by the charity to fix it up, then you can deduct the full sale price of the vehicle from your taxes. However, if the vehicle is sold with significant repairs or preparation by the charity to fix it up, you can still claim the vehicle based on its full market value. It’s a win-win situation. Generally, state charity officials ask for the title of the car, to make a copy of the transfer, and to notify the local DMV about the changes in registration. This is very important when donating a vehicle, especially a car.
Come tax time, remember to claim this vehicle on your taxes and you must have form 1040 completed. Your Maryland Buick dealership will be happy to answer any questions you might have. For any more information about donating cars, go to your Maryland Buick dealership , and check out A Donors guide to car donation, provided by the IRS. You can find car donation guides on the internet or ask your Maryland Buick dealership for help.
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