Tax Donation Guide: Vehicle Donations Yield Tax Deductions
Tax season is quickly coming to a close and while taxes are top of mind, it's important to know that MERS/Goodwill makes donating a car to charity a simple and rewarding task.

ST. LOUIS, MO, April 04, 2010 /24-7PressRelease/ -- Tax season is quickly coming to a close and while taxes are top of mind, it's important to know that MERS/Goodwill makes donating a car to charity a simple and rewarding task. Although the regulations and rules surrounding the donation of a vehicle might be confusing, MERS/Goodwill provides expert guidance and all of the necessary paperwork needed to file federal income taxes.

"There are many mixed messages about eligible tax deductions when donating a vehicle to charity," said Roni Vetter director of the MERS/Goodwill Auto Donations program. "We do our best to make sure donors understand the IRS regulations so they can receive their best tax deduction within the guidelines of the IRS. The donor gets the tax deduction and MERS/Goodwill receives the revenue from the sale of the donated vehicle to help fund our many job training and job placement programs in the community."

The eligible tax deduction of a donated vehicle is based on the gross sale of the vehicle. If a vehicle sold for more than $500 the donor is eligible to use the sale amount as their tax deduction. However, if a vehicle sold for less than $500, the deduction would be the lesser of either the fair market value or $500.

In addition, understanding the fair market value of a vehicle is key to donating a car. Fair market value is defined as what a willing buyer would pay and a willing seller would accept for the vehicle "as is" when both parties are compelled to buy or sell, and both parties have reasonable knowledge of the relevant facts. Tools for vehicle pricing such as Kelly Blue Book and N.A.D.A. are common means of determining fair market value. For more information on the specific regulations for donating vehicles, go to the IRS publication online: http://www.irs.gov/pub/irs-pdf/p4303.pdf or call
(800) 829-1040.

If you are interested in donating your vehicle to MERS/Goodwill, check out www.mersgoodwill.org or call at 314-241-3464 or 1-866-MO-4CARS.

Press Release Contact Information:

Melanie Bernds
Black Twig Communications
Account Supervisor
7711 Bonhomme Avenue, Ste. 400
St. Louis, MO
United States of America 63105
Voice: 314.255.2340