How to Donate for a Tax Write-Off

Any donation you make to a legally recognized charity is tax deductible, as long as it meets IRS standards. Follow these steps to claim a deduction that will pass an audit.

Difficulty: Moderately Challenging

Instructions

1. Donate cars to a registered charity. Be careful of car donation scams, which have been known to take cars and not use them for charitable purposes. Ask a church or charity store if they accept car donations or can recommend a reputable place that will.

2. Clean and repair other items that will be donated. Photograph the items once they have been restored to good condition. Throw away anything that can't be repaired or cleaned enough to be usable.

3. Bring the items to a charitable thrift store (the Salvation Army operates thrift shops around the country) or arrange for the store to pick up larger items. Photograph the items entering the store for an extra record of the donation. Be sure to get a donation receipt from a store employee.

4. Decide the value of the items being donated. Assess most items at one fourth of their original price. Ask a thrift store employee to help assess the items you donate. Make sure the receipt reflects that amount.

5. Keep the donation receipt and the photographs with your tax receipts for the year.

Tips & Warnings

• The federal government allows only a $500 write off for cars. If the charity eventually gets more when they sell the car, that extra amount can then be deducted.

Resources

• Donateacar.com can provide information about making car donations in any state.

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on 11/10/2008 How can you write off property that is sold at a discounted price to a church.