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Step-by-Step guide to Car Donation and getting a Tax Rebate
Donating your used car to charity is a win-win situation; the charity gets your gift and you get tax deduction. Below are some simple steps to make a car donation.
 Understand the rules first
A good place to read the government rule on car donation is IRS Publication 4303(PDF 179k) , A Donor's Guide to Car Donations available on the IRS's web site . This guide outlines some important rules regarding car donation.
Determine the value of your old car
Although the blue book might help you determine the value of your car, you should read IRS Publication 561, Determining the Value of Donated Property, to get a better knowledge of your car's worth.
Find a charity to donate your vehicle
If you are attached to a charity or a non-profit organizations, then that organization might be your obvious choice for donating your car. You can also check the Yellow Book or search on the Internet to find an organization to which you feel like donating your car. Checkout the IRS Publication 78, where you can search for a list of organizations eligible to receive tax-deductible charitable contributions. Make sure the charity is eligible as donation must be made to a qualified organizations in order to be tax deductible.
Make your donation
After you have made the donation, remember to ask for a written acknowledgement from the charity. You will need to attach this acknowledgement while filing your tax returns so that you get a tax rebate.
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