Car Donation – Things You Should Know
The car donation process is one that many go through every year to get rid of vehicles that are no longer wanted or needed. Not only is it advantageous from a tax point of view, but it also helps you avoid the laborious task of having to sell the car privately.
Why you should think about donating your car?
1. It Can Cut Your Taxes
Yes, you heard me right, if you donate a car, you can take benefit of tax deductions. Remember that cars are not the only vehicles you can donate.
Vehicles like boat, trucks, RV’s and campers can also be donated. Just make sure that the organization you donated your car is listed as a non-profit organization.
Related Story: Tax Tips For Your Donation
2. Donating A Car Can Make You Some Money
Try to find a company that provides the facility of partial payment for cars that have high value. This implies that if your donated vehicle is recognized as a “high value” vehicle, you will get a partial payment for the value of the car. You don’t have to worry because this is perfectly legal. These are the deals that you should look for in a company before you make a vehicle donation.
3. You Will Help The Needy
The best thing when you donate a car to charities is that you are able to help the needy through these institutions. You can be the richest man in the world, but if you cannot share your blessings with those who need them most, you are nothing. Giving is always highly rewarding.
Do you want to donate your car to a charity? Here is what you should look for.
Try to find a vehicle donation service that can help you to easily choose a charity you want to donate your car to. A donation service will function as an intermediary. Having such services is a better option if you want your support for a charity to be rendered privately.
2. Make Sure That The Charity Is Registered
Study or make an assessment of the charity of your choice to ensure that it is registered or authorized by the IRS to provide you with tax deductions.
Donating a car should only take a few days. As soon as you make a selection of your charity, a tow truck should be sent to your home that will pick the car you want to donate.
3. Make Sure That The Charity Gives An Invoice Or A Receipt
After giving away your car, make sure that the charitable organization will give you a receipt or an invoice. Here are the things that should be clearly mentioned in the receipt you get:
- charity’s name and charity tax ID
- your name
- the date of transaction
- model of the car you donated
It is also worthwhile to keep the record of the donation as a precaution. In addition, if the vehicle is valued at more than $ 500, you will need to fill out an IRS form that will need to be attached to your tax return. You will also need to attach a receipt that will acknowledge the donation.
Should the car be sold by the organization, ask for a certificate indicating the selling price, and that it is an arm’s length transaction, ie when buyer and seller have no relationship with each other.
How To Find A Place To Donate A Car
Car donation is not only limited to cars that are in working condition. You can also donate a car that does not work anymore. A car donation company should be willing to tow it away for free.
If you are interested, you should check out various offers by companies dealing in the car donation programs. You can easily contact them online or by telephone. These companies have their own websites, so asking them about the process will not be a problem for you.
Apart from the benefits listed above, the entire issue of’ middlemen’ interfering in the car selling process is avoided by a few charitable organizations that have their own people in charge of donation process as well as their own car lots where cars donated to them are auctioned. This is certainly the most recommended option for many car donors simply because this is a humanitarian gesture that can help hundreds and thousands of people who are in need of someone’s assistance.