The Cars 4 Causes Blog.

Car donations that come in during December can still make the 2009 tax deduction deadline. Call right away for details and to see how the IRS timeline fits with your personal tax write-off situation for donations.

The year 2009 has been a wild year for car donation and for the auto industry in general. Much of the news swirled around the federal government’s Cash for Clunkers program. The program itself was quite controversial politically and amongst economics scholars. But for the car donation arena, the program’s impact has been decidedly negative.

We’ve seen that many of the used cars that went into the Cash for Clunkers program might have been destined for charity; they were rerouted instead into the scrap and salvage markets, thus both reducing donations to charities and, also, their flooding of the recycle auction markets reduced revenues charities could get from recycling old cars donated to them. We’ll be talking more about this next year.

HR571 – Legislation with Big Potential for Car Donors and Charities

As one of the foremost leaders in the car donation arena, Cars 4 Causes® is always on top of auto industry, auto recycling, and philanthropy trends. For example, one of the little-discussed news items of the year was HR 571, a legislation introduced in January and referred to the House Committee on Ways and Means (where it has languished all the long year). This bill could undo some of the damage done by the limitations on deductions for charitable car donations imposed by Congress in 2004. HR 571 would allow donors to deduct the fair market value of car donations up to $2500, and the appraised value on donations over $2500. This would help charities; higher value car donations have dropped since limitations were imposed, and charities have been on the losing end.

Cars 4 Causes® is following this legislation on behalf of car donors and – even more – on behalf of the charities that depend on vehicle donations to fund their causes. We’ll keep you updated.

But now, at this time of year, we know most of us are focused on the hustle-bustle of the moment. We’re receiving a rush of year-end vehicle donations, with donors concerned about meeting 2009 tax write-off deadlines. And that’s where our focus is, too.

Call us at 800-766-2273 or chat with us online if you have any questions about your donation. We’re here to help. And we thank you for your generous donations; so many of your charities depend on them.

Fall is in the air. The wind is blowing today and the temperatures dropping. The weather is telling us that it’s autumn and we’re entering the fourth quarter of the year, which here at Cars 4 Causes® is one of our busiest times. This is the time of year when many owners think about donating their vehicles to meet end-of-year tax deduction deadlines. And it’s a time of year when donations to charities are on peoples’ minds even more than usual.

Getting Your Tax Deduction

If you’re considering car donation to charity, please check out our FAQ’s for insight into the donation process. This year is an especially good year to donate for many of us. See our July blog explaining additional 2009 tax incentives.

You’ll find our general explanation of tax deductions in our FAQs. In brief, it says:

Donations to a non-profit organization or charity that is classified under 501(c)[3] are often tax deductible. Cars 4 Causes® is a 501(c)[3] and therefore donations made to us may be utilized as a tax write-off, allowing you a car donation tax break. (Everyone’s tax situation is different, so we do advise you to consult with your tax professional to determine tax benefits from your car donation.)

The best and most compact resource we’ve found to describe the rules around car donation tax write-offs is A Donor’s Guide to Vehicle Donations. It’s a 16-page brochure and is downloadable. We recommend it as an excellent resource because it comes straight from the source: the IRS.

We’re also here as a resource for you, available toll-free by phone at 800-766-2273 and by online chat. We’re always happy to share our expertise.  As The Charity That Gives To Charities®, we make it easy for you to choose a charity to benefit from your generous donation. If you’re thinking of making a vehicle donation, call now. Get your tax deduction and make your charity donation, too.

Whether you’ve missed the Cash for Clunkers opportunity because your car did not qualify or because the program closed before you were ready, you can still take advantage of some great tax opportunities in 2009. This is one of the best years in recent history for car donation tax deductions.

We’ve been talking about this ‘double-tax’ advantage for the past couple of months. See our July blog, Cars 4 Causes® Adds it Up: Two Automobile Tax Deductions this Year! And it’s still a terrific opportunity.  2009 is – quite simply – a great year to donate a car to benefit your favorite charity.

A quick recap of those tax write-offs:

2009 Special Sales Tax Break for New Car Purchases. Equal to the sales and excise tax on the purchase of a qualifying new vehicle, this tax break is available even in states with no sales tax. (See the government’s program rules to see if you can benefit through this program.)

Tax Deduction for Your Car Donation. This is not just a 2009 opportunity. It’s every year. Call Cars 4 Causes® for more information (800.766.2273).

When you donate a car, you choose the charity that benefits, and isn’t it nice that you get a tax benefit, too!

The federal government’s recently announced new car sales tax deduction is terrific news if you’re planning to donate car to charity this year. With this program, you may qualify for two tax deductions – that’s right, two: one for the car you are donating, and one for the new car you purchase.

Much of the media talk around the subject of new car tax deductions has been focused on the Car Allowance Rebate System (the so-called “Cash for Clunkers” program). But, while this program may benefit some new car buyers with a trade-in vehicle, it does not pencil out for everyone.

Tax Deduction for New Car Purchase

For many, especially if you have a charity you support, the real value may be in the New Car Tax Deduction amendment to the Economic Stimulus Package. With this program, you can be eligible for a tax credit (a tax deduction against taxable income) equal to the sales and excise tax on your purchase of a qualifying new vehicle. (Click here to see the rules of this program.)

Tax Deduction for Car Donation

You still take your tax deduction for your car donation, too!

And, as the rules stand, your tax deduction on your donated vehicle equals the gross selling price. (Click here to see the federal brochure on car donations.) There are lots of reasons that donating your car may be the best option for you. For example, your vehicle may be worth more than the clunker payoff would allow; you or your car may not qualify for the clunker program; your tax situation may benefit more from a donation (your tax accountant can determine this for you).

Overall, too, there’s the benefit of donating a car to charity and helping your cause while also improving your tax situation this year.