WOTMF

Donate your car or truck for a tax deduction

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If you are looking for a way to get ride of an old vehicle, you may want to consider a car donation.  To donate a car you simply have to contact WOTMF and they take care of everything else.  Thus, donating your car to charity rather than selling it is more convenient and fast.  Moreover, you help those who are in need of assistance when you donate your vehicle and benefit from it through tax breaks in return. The IRS allows a deduction to your taxes payable equivalent to the proceeds from your car donation.

Before you donate your car to charity you will probably want to know how much will your car donation tax deduction be.  The amount of your car donation tax deduction is covered by the 2005 revised federal tax legislation on car donations.  This legislation describes two possible amounts for your car donation tax deduction- the gross sales amount and the fair market value of your car.

Gross Sales Amount

Before the tax legislation was revised in 2005, the fair market value of a car donation was the amount used for the donor’s tax deduction.  However, the IRS found out that donors were claiming fair market values of donated cars based on the make and the model without considering the car’s condition.  Since the fair market value is the amount agreed upon by the donor and the car donation services, the donors usually considered the book value of the car as the fair market value without taking account of depreciation and the needed refurbishing.

Car donation services usually either refurbish donated cars first or sell them as is at auctions where the true fair market values of the cars are considered.  So if the cars were donated to them at a bloated fair market value, the amount that the car was sold for did not match this bloated value.  The 2005 car donation tax legislation revision corrects this error by allowing only the gross sales amount of the donated cars as the donor’s tax deduction.

Fair Market Value

The legislation however, still allows that the fair market value of the donated car be used as the donor’s tax deduction provided that they meet certain conditions and paperwork.

Car donation services do not always sell donated cars.  They may either use the car for their charitable causes or assign the car to a needy family or individual.  If the donated car is used this way by the car donation services, the revised car donation tax legislation allows that the fair market value of the car is used as the donor’s tax deduction.

The necessary paperwork that the IRS needs for the fair market value tax deduction is an acknowledgment receipt issued by the car donation services.  This paper must state that the car is used directly for their charitable causes, the donor’s tax identification number or social security number and the car’s identification number.  Moreover, the IRS may also require that the document contain a phrase restricting the donated car to charitable uses only and not to any future sale.

Donating a car and reducing your taxes is very convenient and easy.  Call WOTMF 713-482-7633 we will help you get the maxuimum deduction for your donation. We will send a wrecker out to you free of charge. Usually the same day.

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We desperately need a food pantry in our area during these hard economic times. It is not uncommon these days to need to scrimp on food in order to keep the lights on and the rent paid. In America, one of the richest countries on earth, there is no reason for anyone to go hungry, though many do every day. We are often quick to help feed people in other countries but seem to forget that there are many here at home that need a little help from us.

We seem to think that because we have large food banks that the problem is solved, but it isn’t. The large regional food banks serve a vital need but what they can’t do is reach out into the neighborhoods in a personal way. We desperately need many local food banks that can provide help on a personal level neighbor to neighbor.

People need to know that there are people, neighbors, that really care. These local food banks provide more than just food. They provide a place of hope, a chance to make it to the next payday without being hungry, a chance to have a somewhat normal life even this economy.

We are currently in the process of looking for places that will serve as local food banks in areas that really need them but times are hard on us as well. A few weeks ago our truck that had been purchased to collect food was stolen. Just another set back but with your help we will carry on.

We are accepting food donations please contact us for pick up at 713-482-7633

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There are some vehicle donation scams that are going around the web. We at WOTMF want to make everybody aware of these scams. WOTMF will not participate in these scams.

The biggest scam going around now is a company will proposition a charity to collect their donated vehicles and dispose of them. This all sounds good but the charity only receives a small amount of the money that the vehicle brings in. Most of the time the charity doesn’t receive even 3% of the money.

The second biggest scam is charities advertising to give you a partial cash payment. Charities ask for donations to make it easier to help others. If a charity is offering you a cash payment for your donation they are in fact purchasing your car, truck, boat or RV. You may not be able to claim a deduction on your taxes.Also check the most recent tax laws before accepting anything in return of your donation.

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