Sep/090
How To Calculate Deduction For Car Donation
The amount of tax savings you will get from donating your car to charity depends on your tax bracket and the value of your donation, i.e. your car. Here is a handy calculator that lets you figure out how much tax savings you can expect to get by donating your car to goodwill.
Tax Savings = Value of Donated Car x Your Tax rate
So if your car is worth $1000 and your tax rate is 30%, you will save $300 on your taxes.
Keep in mind that you must itemize your deductions in order to gain a tax benefit. Make sure that when itemized, your total deductions are greater than your standard deduction. If they're not, stick with the standard deduction. For 2008, the basic standard deductions are:
- Head of household - $8,000
- Married taxpayers filing jointly and qualifying widow(er)s - $10,900
- Married taxpayers filing separately - $5,450
- Single - $5,450
*Your standard deduction may be increased if you are age 65 or older or blind.
Mar/100
Maxir Blog » Blog Archive » Car Donation – An Act Of Goodwill That …
As a fringe benefit you will also be receiving a sizable tax benefit on your Car donation. This act of goodwill can actually benefit you big time in the long run. Add to that the fact that your car, even if it is non-running will be ...
Read the rest of this great post here
Mar/100
tax credit: Can I get a tax credit for donating my car, or only a …
Reply:Donating a car gives you a deduction, not a credit. It only gives a tax benefit if you have tax liabiltiy for the year - this doesn't necessarity mean that you owe at the end, but that you don't get back ALL of your withholding. ...
Read the rest of this great post here