Archive for July, 2005
Posted on July 20, 2005 at 8:51 pm by Jeff
IRS Officials Urge Care for Those Making a Car Donation; New Law Changes Rules at End of the Year
IR-2004-142, Nov. 30, 2004
WASHINGTON — The Internal Revenue Service issued a consumer alert today to help taxpayers avoid potential pitfalls when they donate their automobiles to charities.
In addition, as taxpayers plan their charitable giving, donors should understand the way that the American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004.
Next year, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.
Under the new rules, the charitable organization must provide an acknowledgement to the donor within 30 days of the sale stating the amount of gross proceeds. Alternatively, if the charity significantly uses or materially improves the vehicles, the charity must certify this intended use and duration and provide an acknowledgement to the donor within 30 days of the contribution. If the charity significantly uses or materially improves the vehicle, generally, the donor may deduct the vehicle’s market value.
For the remainder of 2004, however, the new rules do not apply. Under the rules in effect for 2004, taxpayers will be able to deduct the fair market value of the contributed property.
“Just because the rules will be tightened for vehicles donated next year doesn’t mean anyone should give a car to charity and claim an inflated value this year,” said IRS Commissioner Mark W. Everson.
IRS officials recommend that people who want to donate their vehicle by Dec. 31, 2004, take the following steps:
Check That the Organization is Qualified — Taxpayers should make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can use the IRS Web site to check that an organization is qualified by searching Publication 78. Publication 78 is an annual, cumulative list of most organizations that are qualified to receive deductible contributions. Publication 78 is also available in many public libraries. In addition, taxpayers can call IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization’s correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified. They frequently are not listed in Publication 78. Donations to these institutions are tax deductible.
Itemize in Order to Benefit — Many taxpayers can’t take a deduction for car donations because they don’t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2004, the standard deduction will be $4,850 for single; $9,700 for married filing jointly). Slightly more than one-third of the 130 million individual taxpayers itemized in 2001, the last year for which complete data is available.
Calculate the Fair Market Value — The donor must take many factors into consideration to establish the value of the car. Many used-car buying guides contain step-by-step instructions so that readers can make adjustments to the value of a car for accessories, mileage and other indicators of its general condition. Both Publication 526, Charitable Deductions, and Publication 561, “Determining the Value of Donated Property,” provide detailed instructions.
Deduct Only the Car’s Fair Market Value — Some car donation program operators have mistakenly claimed that donors can deduct the highest value listed in a used-car buyer’s guide for their make and model of car, regardless of the donated car’s condition. The IRS, however, will only allow a deduction for the fair market value of the car. Fair market value takes into account many factors, including the vehicle’s condition. The fair market value of the taxpayer’s car may be substantially different than the highest value listed in a used-car buyer’s guide for that make and model of car.
Document the Charitable Contribution Deduction — For vehicle donations, taxpayers must document the car donation and its fair market value. Recordkeeping requirements are comprehensive and vary depending on the amount of the contribution and the total amount of the charitable deduction. IRS Publication 526 details requirements for the types of receipts taxpayers must obtain and the forms they must file.
Contact State Charity and IRS Officials When in Doubt — Donors with questions about whether a contribution is deductible should call the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059. They can also find IRS forms and publications at IRS.gov. Donors concerned that contributions are being solicited for fraudulent purposes should contact the appropriate state charity official, who is often located in the state attorney general’s office. A list of state charity official offices can be found online.
Posted on July 20, 2005 at 8:45 pm by Jeff
Your Car Stereo’s System - 5 Tips to Professional Results
By George Steiner
You have chosen your new car stereo and now it is time to install. The final result will depend on the quality of the installation. It won’t matter how expensive your car stereos system is if you do not install it correctly. Your speaker sound will depend on the amplifier and the type of enclosure.
Your amplifier will depend on the current, and the current will depend on the alternator and the wiring. Mistakes will leave you with disappointing results. Here are a few tips that will make the installation of your car stereos system a success:
The first thing you should do is determine the location of the speakers. Speaker location is the key to quality sound. The distance between the left and right speakers and the distance between the left and right ears is not always the same. Try to make the difference between the left and right speakers as little as possible. You may have better luck if you place the speakers on the floor, but you do run the risk of the sound seemingly coming from below. The location of your speakers is imperative to the sound quality you get from your car stereo. When installing your car stereos system, place the speakers temporarily in various locations to find the perfect sound before you install them permanently.
After you have determined the perfect location for your speakers, you must use Dynamat or other similar materials to stop vibration. This is to prevent the metal panels from becoming part of your sound system. How you connect your cables and the location of the cables is essential to achieving a top quality sound from your car stereos system. Some install huge amplifiers in an attempt to get the best sound from their speaker. The fact is you do not need to over do it on the amplifier; you simply need good quality cables to connect it.
Now you can begin the installation of the amplifiers and head unit. You can choose to use the factory wires or you may want to give the head unit a separate circuit. If your car stereo has excellent quality factory audio you should have no need for an additional circuit. Use good quality cables and do not cut costs on clamps and distribution blocks. This is the time to install filters as well.
Building a speaker enclosure is the next step. There is no set rule on which type of enclosure will work best with your car stereos system. You should determine which type of enclosure will give you the sound you desire. Different sizes and shapes of enclosures will produce different sounds. The best type of enclosure is an individual choice. You should experiment with various shapes and sizes until you find the sound quality you are looking for.
After your speakers are installed to your satisfaction, be sure to upholster your door panels with colors that match your car interior. Installing your car stereos system is a highly personal experience. Experiment with various locations and connections until you find the sound quality you are looking for.
George Steiner
www.1-caraudio.com
George and Judy Steiner from North Carolina have unsuccessfully maneuvered through the teenage eons with their two daughters. The countless boyfriends with modified auto stereo systems broadcasting bone-jarring bass, little room to sit due to the electronic gagets and non-existant trunks, experiences we could have done without!
Article Source: http://EzineArticles.com/
Posted on July 20, 2005 at 8:44 pm by Jeff
Negotiating Tips for New Car Buyers
By Levi Bloom
You need a new car, but you’re just not ready? Even if you have money and/or great credit and you know all the details of the car you want, there is still one thing standing in your way… Negotiating the price!
It can be uncomfortable or even scary, but you’ll have to do it at almost every car dealer. That’s why I’m going to give you some tips to get you through the negotiating process and drive home in your new car!
Being a good negotiator doesn’t have to be difficult. Sooner or later you’ll have to negotiate with someone for something, so you better get started now.
When you are trying to negotiate with a car dealer, you should know that they are very practiced in the art already and will hit you with everything they have. You will need to know how to get through their “car speak” in order to be successful.
Here are a few tips to successful negotiating.
-Remain positive and confident.
-Don’t talk down to your opponent.
-Show up prepared and ready to counter anything that may come up.
-Bring ads from other dealerships with you as an extra weapon.
-Finance your loan before you arrive at the dealership so as to avoid paying unnecessary extra fees.
-Bring a friend with you for extra support.
The key is for you to get in and out of the dealership as quickly as possible because the salesman will definitely find more loopholes to up your charges if you stay. However, something that you should look out for from salesmen is the extra little tricks they throw in to force or rush you into a buying decision.
You have to remember that they are trying to negotiate you into paying more money just as you are trying to negotiate paying less. Here are some of the things that you can expect to hear from them:
1. “These cars are flying off of the lot. It may not be available for the same deal tomorrow”. (Threaten to leave and they will ease up and try to change their strategy)
2. “This deal is only good for today. If you come back tomorrow I can’t guarantee that the deal will be the same.”
3. “I’m an honest man. Look at how many cars I’ve sold this weekend” (This is where he will show you his list of sold cars. If he does this, then tell him that he doesn’t need your money).
4. “I hate to tell you this but I have another offer on the table from a man that is willing to pay more money than this. I am just waiting for his paperwork to be returned”.
(Tell him that if he promised the car to someone else, you don’t want to interfere and that you should leave then.)
5. “To cover the overhead costs, we have paid $13,000 for this car (Just check your paperwork in your folder and prove them wrong).
If you want to save money while you are negotiating you should negotiate from the dealer cost up and not from the MSRP down. You just need to remember that dealer cost is not the same as the factory invoice.
Some dealerships refuse to haggle over the cost of a car. Once you make your opening offer you should never accept anything higher than that, as far as costs go. If the dealership that you go to doesn’t haggle, don’t sweat it, some other dealership will. (If you start to walk away, they might just chase after you and change their mind!)
Keep these tips in mind and be prepared for the salesmen. If you remain strong and confident, and don’t let the dealer push you around, you can get your new car for the price you want.
Levi Bloom is the webmaster of http://www.thenewcarbuyersguide.com.
It’s a great place to get started on the car buying process.
Check out his site for more information on negotiating, researching, and avoiding scams while buying your new car.
Article Source: http://EzineArticles.com/
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