Car Donation Program
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1. When giving a vehicle to a car donation program, a person should perform research before making such a decision. |
True
Most organizations receiving a car charitable donation are honest, but fraud does happen in some situations. A vehicle donor should ask questions about money raised and where it will be used. A donor should also obtain references from the organization. A reputable car donation program will be happy to provide this information. |
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2. When making a car charitable donation, the amount of money the vehicle is worth can be a tax deduction. |
True
When a person wants to dispose of an old car, donating the car to a car donation program can help both a worthy cause and give a donor the advantage of a tax deduction. A taxpayer who wants to donate a car can deduct, within limits, the fair market value of the vehicle. Becoming a donor can be a good way to give and receive in return. |
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3. Any organization can receive a car charitable donation and offer the donor a tax receipt. |
False
The IRS must approve an organization wanting to accept a car charitable donation. Researching organizations will reveal which of these follow the tax laws and are approved by the IRS. Only those organizations approved by the IRS can issue a valid income tax deduction for a car charitable donation. |
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4. When donating a car to a car donation program, tax deductions can be taken only if an itemized Schedule A of Form 1040 is completed and supplied to the IRS. |
True
All charity giving must be itemized deductions on a Schedule A of the Income Tax Form 1040. There are some limitations that must be understood. The IRS has issued a guide for donors wishing to donate to a car donation program. This guide is Publication 303, "A Donor's Guide to Car Donation". |
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5. To get into Heaven, a person must do good acts such as giving to charitable organizations. |
False
Ephesians 2:8 - For by grace are ye saved through faith; and that not of yourselves: it is the gift of God. |
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