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This sheet is for your convenience. V-DAC gives no tax advice. |
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You are entitled to receive
a Tax Benefit, a deduction for the Fair Market Value of the
vehicle you donate, if you itemize your deductions. Your benefit is
the amount that your taxes will be reduced by your vehicle donation.
This is determined by your "incremental tax rate" - the rate you pay
on the last dollar of income. Click here for the 2003/2004
Federal Tax Rate Schedule. Rates
for states vary by state and some states do not allow itemized deductions.
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What You Can Deduct:
In 2003/2004, you are allowed to deduct the "Fair Market Value"
of vehicles donated to non-profits (most churches, schools and charities.) |
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Determining Fair Market Value*:
You have to rate the condition of your car
and compare it to others sold in your market. You can use local ads
(on www.cars.com)
and dealer lot prices or one of the many guides on used car pricing.
The easiest guide to use is Kelley Blue Book on the net at www.kbb.com.
You can claim the dealer retail price for your vehicle if you deduct
the cost of bringing it to showroom condition. If you claim a $5000
or higher deduction on the vehicle, you will need an independent appraisal
and a Form 8283 (We will provide a Form 8283 on request. Call 877-999-8322 to request one. We are forbidden by law from providing appraisals.)
It is recommended that you keep photos showing the condition of your
vehicle to help verify your claim. |
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Limits on deductions:
Restrictions start when your total charitable contributions exceed 20% of your adjusted gross income.
Always consult your tax advisor. |
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To estimate your tax benefit: |
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- Print this page and fill out the form below.
- Find the retail value and deduct any estimated repairs or adjustments to get to the
Fair Market Value below.
- Estimate your 2003/2004 federal and state incremental tax rate
and fill in below.
- Multiply the Fair Market Value by the incremental tax rates and add the result to get to your total estimate tax benefit.
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Fair Market Value |
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Sources used: Kelley Blue Book (www.kbb.com),
newspaper ads (www.cars.com),
Dealer prices, other: ____________
Retail Value ........................ $_________
Less:
Repairs or adjustments..$_________
Fair
Market Value................. $_________
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Estimated Tax Benefit: |
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Federal |
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State |
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Total |
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Fair Market Value........ |
$_______ |
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$_______ |
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Times: |
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Incremental Tax Rate..... |
X 0.____ |
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X 0.____ |
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Estimated Tax Benefits... |
$_______ |
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$_______ |
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$_______ |
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Tradeņin or Donate Calculation: |
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Total Estimated Tax Benefit...... |
$_______ |
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Less: Trade-in Offer...... |
-$_______ |
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Donation Gain or Cost(-) |
$_______ |
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