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Tax Deduction Consulting: Car Donations Derby KS

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.

Mr. Randy Yeisley (RFC®)
(316) 719-2900
PO Box 12797
Wichita, KS
Company
Freedom Advisory Group, Inc.
Qualifications
Education: Randy began his career in financial services in 2004 after a 20-year career in the telecommunications industry. After spending years accumulating his own nest egg, he realized he knew very little about protecting and growing his retirement assets. Randy
Years of Experience: 4
Membership
IARFC, MDRT, NAIFA
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Returns, Seminars Work

Data Provided by:
Flexible Income Tax Services - FITS!
(316) 304-1132
264 Village Lake
Derby, KS
 
MOORE'S TAX SERVICE
(316) 524-7677
1614 MILLS ST
WICHITA, KS
Prices and/or Promotions
$55.OO FED AND STATE

Liberty Tax Service
(866) 871-1040
1111 S Rock Rd
Wichita, KS

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A-Ok Income Tax Serv
(316) 682-6242
1547 S Oliver St
Wichita, KS
 
Mrs. Angela L. Tejeda (RFC®), MBA
(316) 721-5191
8307 W. 34th St. N
Wichita, KS
Company
Tejeda Financial / Money Concepts
Qualifications
Education: BA - PsychologyMBA
Years of Experience: 10
Membership
IARFC, FPA, SFSP
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Charitable Foundations, Asset Protection, BuySell, LiabCover, Compensation Plans

Data Provided by:
Jackson Hewitt
(316) 681-3278
1712 N. Nelson Drive, Ste B
Derby, KS

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Accounting Plus
FAX316-462-0886
P O Box 187
Haysville, KS
 
Neighborhood Income Tax Service
(316) 684-5380
1625 S Rock Rd Ste 123
Wichita, KS
 
A 1 Tax Service
(316) 264-0349
3555 E Douglas Ave Ste 50
Wichita, KS
 
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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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