For more than ten years, Utah was considered as one of the most giving states, with 35% of its residents volunteering to different advocacies. On top of that, more than 70% of its residents are also giving money to various charitable organizations.
If you are looking for a cause to support, Utah is the best place to search. There are various cause-oriented groups in the state. Supporting one is like being in solidarity with all the generous people living there. A good cause that you can support is the car donations Utah charity.
If you search online for car donations in Utah, you can see different organizations accepting cars as a gift. Before you decide on supporting any of these groups, consider the following factors.
Make sure that the charity you want to support is eligible to issue tax deductions.
If one of the main reasons why you are donating your vehicle is to get tax deductions, you have to make sure first if the group you want to support is qualified under section 501 (c) (3) of the IRS. The said section refers to religious, educational, and charitable organizations.
To check whether or not the organization you want to support is a qualified charity to issue tax-deductible receipts, you can go to the IRS website and open the “Exempt Organizations Select Check” tool. You can also call Customer Services of the IRS on (877) 829-5500 to verify the status of the organization.
Check if you qualify for a tax deduction.
You can only enjoy tax deduction benefit from your car donation if you itemize these deductions under Schedule A of your Form 1040. Bear in mind that there are limitations applicable to deductions from charitable contributions. Like for example, your charitable deduction cannot go beyond 50% of your annual adjusted gross income. Aside from this, other limitations may also be applicable.
Calculate how much you can deduct.
These are the deductibility rules applicable to qualified vehicle donation.
A vehicle can only qualify for a donation if it is an airplane, a boat, or a motor vehicle manufactured mainly for use on public highways, roads, and streets;
Vehicles held by the prospective donor primarily for sale to customers are not qualified for donation.
The amount of tax deduction for the donated vehicle will be based on what the recipient organization will do to the car. In checking the purpose, the charity-issued written acknowledgment will be the basis. If the charity puts the vehicle for sale, your deduction limit is equal to the gross proceeds of the sale. Specific exceptions to the general rule may apply, though.
The good thing about donating your car to charity is you also get something valuable in return. The tax deduction is one of the most persuasive reasons to get people to give their extra vehicles to charity.
Then again, generally, people do not need any reason to be generous and kind to each other. Their nature dictates that helping a needy brother or sister is the best thing they can do as a human being. The benefits they get to enjoy in the process of doing something good is just an added value.