Quick Facts About Tax Write Offs
Write off background
A write-off is an instrument used by organizations or individuals to lower their taxable income. Write-offs are typically associated with expenses that are necessary for income or work-related expenses. In addition, charitable donations are often expenses that can be written off. When the expenses are written off they are taken as a percentage against the total taxable income. When taken off the income is effectively reduced based on the individuals respective tax bracket.
Car Donation Tax Write Off
A car donation tax write off can be obtained by an individual who donates their automobile to a qualified charitable organization. When donated, the federal government will write off an amount equal to the fair value of the car (or a percentage of this figure) and subtract from the individual’s taxable income. As a result, the person’s tax rate will decrease in correlation to their respective tax bracket.