Want a big tax break for that old clunker? Be careful of who you donate your car with. Not all charities can maximize your write-off. Our Material Improvements Program can help boost your donated vehicle's selling price, thus getting you a larger deduction. Donating your vehicle in Colorado to Cars For Prostate Cancer will get you a maximum tax deduction.
In order for you to financially benefit from making a vehicle donation to gain a tax deduction, first you'll need to be a taxpayer who itemizes deductions on your federal and Colorado income tax return or IRS form1040A.
Guidelines for Colorado Car Donation Tax Credit
Colorado allows tax deductions for vehicle contributions, whether you donate to a charity within the state or outside. The rules governing this deduction apply uniformly to all taxpayers.
So if you donate your Car, Truck, RV or Boat to the Prostate Cancer Awareness Project in the State of Colorado, you can claim a Tax Deduction against your Federal Tax Liability and depending on your tax bracket you can receive up to an additional 4.6% deduction against your Colorado State Tax Liability as well.
Guidelines for Federal Car Donation Tax Credit
$500 Minimum Deduction
The current IRS guidelines state, a taxpayer could claim up to $500 for any donated vehicle/vessel accompanied by a receipt from Cars For Prostate Cancer, even if the vehicle is sold for less than that amount.
Gross Proceeds Deduction
A taxpayer could claim the amount the donated vehicle sold for by us, accompanied by IRS form 1098C, indicating the amount sold and other pertinent info from the donor. If sold for more than $5,000 then IRS form 8283 will be required as well.
Material Improvement Deduction
A taxpayer could claim fair market value (usually determined by an evaluation guide, like KBB.com) if we materially improve the vehicle and accompanied by IRS form 1098C. If determined value is more than $5,000 then IRS tax form 8283 along with a third party appraisal will be required as well.
For more information on tax write-offs, read the IRS information on vehicle donations. All donors should realize that everyone's tax situation is different, so we recommend consulting with your tax professional to determine how you can benefit.
At Cars For Prostate Cancer we handle all the IRS paperwork. You make the call and we will pick-up your car, truck, RV, motorhome or boat all throughout Colorado for free. After your vehicle is processed we will mail you all the required tax documents to get your maximum IRS tax deduction. It is that easy. Donate your car today!
Additional Tax Information Resources
For all tax information: www.irs.gov
Form 1040: http://www.irs.gov/pub/irs-pdf/f1040sa.pdf
Form 8453: www.irs.gov/pub/irs-pdf/f8453.pdf
Form 1098-c: http://www.irs.gov/pub/irs-pdf/f1098c.pdf
Form 8283: http://www.irs.gov/pub/irs-pdf /f8283.pdf
IRS guide to car donations: www.irs.gov/pub/irs-pdf/p4303.pdf