Nepali People Will Soon Have Train Transportation

कृपया पर्खनुहोस, भिडियो 60 सेकेण्डमा लोड हुदै छ

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Car donation:
 Is the practice of giving away no-longer-wanted automobiles or other vehicles to charitable organizations. In the United States, these donations can provide a tax benefit.


1 In the United States
1.1 Tax considerations
2 In the United Kingdom
3 Practices
4 Benefit to charities
5 References
6 External links
In the United States
Some critics have claimed that car donations are essentially a tax shelter. However, non-profit organizations in the US have come to rely increasingly upon the revenue from car donations. This type of donation has become increasingly widespread; in 2000, 733,000 U.S. taxpayers reduced their taxes by $654 million.

Tax considerations
Although advertised as an easy way to dispose of an old car, donors need to fulfill certain post-donation requirements to qualify for the tax deduction,such as obtaining a written acknowledgment of the car's subsequent sale by the charity,[citation needed] and itemizing tax returns instead of taking the standard deduction.

For vehicles valued at less than $500, the deduction amount comes from the donor's own estimate of the car's value, even if the charity receives less money from its sale. Deductions greater than $500 are limited to the proceeds of selling the vehicle, usually at auction. The U.S Internal Revenue Service advises that starting in 2005:

The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a claimed value of more than $500 changed at the beginning of 2005 as a result of the American Jobs Creation Act of 2004. In general, that Act limits a donor’s deduction to the amount of the gross proceeds from the charity’s sale of the vehicle.

For vehicles valued at over $500, taxpayers are required to attach the charity's written acknowledgment to their tax return .