Car Donation: What You Should Need To Know Before Donating A Car

2007-03-08 10:33:40

( Charity )



For a while, car donation is an alternative for people who want to dispose of an old car without spending more money. When you donate a car to charity, not only does your car benefit the recipient, you also get to deduct the fair market value of your car from your taxes.

However, when people started to take advantage of the tax break because of auto charity, changes were made limiting the claim to the amount the vehicle was sold at the auction.

There are some exceptions to the rules. If the vehicle were used for non-profit purposes or sold for a low price, you still get to deduct the fair market value of your car. In this case, the organization should provide you with the necessary documents on how the car was helped the organization.

Unfortunately, no one is entitled to know the amount you can deduct beforehand or advice the organization to use the car first before donating it.

In addition, though most organization provides the paperwork, you are still responsible in keeping the records and forms you receive from auto charity that will substantiate your claim. If the record is inaccurate, you would be penalized not the charity organization.

Except for the changes in claiming a tax break, car donation is still easy and straightforward .The auto charity programs accepts old vehicle, whether it is running or not. As long, as it is intact and have a complete title that proves ownership.

You should also be careful in choosing the right organization when you donate a car to charity. Some organizations do not fully benefit the charities mission while some does not have a license to offer a tax break. Either you can talk to a charity organization discussing their rules on car donation or you can search the Internet for a list of credible programs. You can also donate a car to charity through a local parish or community school in your area that has a similar program.

Overall, if you feel your vehicle has more value than donating it to charity, better sell the car and donate to a favorite charity. However, if you think that your car would be of more use to benefit someone, consider auto charity.

Since you are completely aware of the pros and cons of car donation programs, your next decision would be that complicated.


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