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Tax Deduction Consulting: Car Donations Burlington IA

Charitable deductions are a well known and common itemized deduction. When the deduction is an automobile, boat, or airplane, it is subject to some special rules. The car donation tax deduction requires the filing of Form 1098-C which is a form for Contributions of Motor Vehicles, Boats, and Airplanes.

Craig Adamson
1000 Lindale Drive
Marion, IA
Company
Title: President
Company: Adamson Financial Planning
Type
Investment Advisor Rep: Yes
Education
BS Iowa State University 1996
Years Experience
Years Experience: 14
Service
Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Wealth Engineering,401k Rollover From Employer,Income for Life/ Preserve Principal,Medicare Planning,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Plan

Data Provided by:
Mr. Kenneth E. Lawson (RFC®), CHFC, CLU, LUTCF
(563) 359-1688
2435 Kimberly Rd Ste 300S
Bettendorf, IA
Company
Client 1st Wealth Management, Inc.
Qualifications
Years of Experience: 44
Membership
IARFC, SFSP
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Retirement Planning, Medicaid Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
H&R Block Inside Valley West Mall
(515) 440-1023
1551 VALLEY WEST DR STE 112
WEST DES MOINES, IA

Data Provided by:
H&R Block Inside Crossroads Center
(319) 233-1989
2060 CROSSROADS BLVD STE 105
WATERLOO, IA

Data Provided by:
Mark's Tax Svc
(319) 256-4605
106 S Washington St
Wayland, IA

Data Provided by:
Bill Elson
3705 Grand Avenue
Des Moines, IA
Company
Company: Spectrum Financial Services
Service
Hourly Financial Planning Engagements,Fee Only Portfolio Management,Pension for Highly Compensated Owners,Stock Market Alternative,Wealth Management,Medicaid,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Individual Income Tax Planning,Wealth Engineering,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Medicare Planning,Health Care Insurance,Retirement Planning

Data Provided by:
Dirk M. Dixon (RFC®), EA
(515) 285-5546
8033 University Blvd
Clive, IA
Company
Baker & Associates, LLP
Qualifications
Education: Bachelors of Business Administration with an emphasis in Finance from Grand View College 1997.
Years of Experience: 15
Membership
IARFC, NAIFA
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Tax Returns, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Business Coach, Charitable Planning, Education Plan, Healthcare Accounts, Asset Protection, BuySell, Compensation Plans

Data Provided by:
Management Control Systems Inc
(515) 883-1600
4214 Fleur Drive Ste 12D
Des Moines, IA
 
Liberty Tax Service
(866) 871-1040
61 S Court St
Fairfield, IA

Data Provided by:
G & R Bookkeeping & Tax Serv
(515) 243-7695
1412 6th Ave
Des Moines, IA
 
Data Provided by:

Tax Deduction Consulting: Car Donations

Car Donation Tax Deduction

When you itemize your deductions, donations to qualified charities or churches are allowed. The car donation tax deduction applies when you donate an automobile and is subject to special rules.

Charitable deductions are a well known and common itemized deduction. When the deduction is an automobile, boat, or airplane, it is subject to some special rules. The car donation tax deduction requires the filing of Form 1098-C which is a form for Contributions of Motor Vehicles, Boats, and Airplanes. It is possible to use another statement from the charitable organization in lieu of Form 1098-C as long as it contains all of the information that would be found on the 1098-C form.

If the value of the automobile is less than $500, the form 1098-C is not necessary and the contribution is treated as a regular charitable donation. If the value is over $500, the amount of the donation is either the gross proceeds from the sale of the vehicle or the vehicle's fair market value at the time of the donation. In the unlikely event that the fair market value is actually higher than your cost or basis on the vehicle, it must be adjusted under the IRS rules for "Giving Property that has increased in value."

When the charitable organization sells the vehicle, it should send a copy of Form 1098-C within 30 days of the sale. When this is done, it is the gross proceeds from the sale that may be deducted. This will be reflected on the 1098-C or equivalent statement. For example, if you donate a vehicle that has a fair market value of $6000 and the organization sells it for $2900, it is $2900 that may be deducted as a charitable donation.

An exception to this rule is when the charitable organization sells the vehicle at a considerably reduced price to a needy individual as a part of its charitable mission. In this case, the fair market value is what can be used as the deduction amount. Again, this information will be reflected on the Form 1098-C.

The f...

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