If you've never considered donating a car to charity, you might want to give the idea a second thought. Donating a vehicle to charity is a wonderful thing to do for many different reasons. You avoid the hassle of trying to sell it, you are doing something nice for others, and best of all, you could get a nice big, fat, car donation tax deduction!
Charities are always in need of good used vehicles. Even if your car is a total clunker, it doesn't matter! The charity will repair or fix the car so that it's in running order, then sell it at auction for a profit. The charitable institution is then able to use the money they make on the sale of the car for a worthwhile cause. It's a win-win situation for both the donor and the charity.
If you think you might be interested in donating your car, here are 6 of the main fundamentals of the process you'll want to know about in order to get a tax deduction.
1. Any type of vehicle may be donated, such as trucks, vans, motorcycles, boats, even campers.
2. The catch is that the value of the vehicle has to offset the entire cost of towing it, if it no longer runs. Most charities in the U.S. will hire a licensed towing company to do so.
3. You must also have the legal right to donate the vehicle. You will need to have the car's title, a copy of the title, or other proof of ownership in order to prove that you are the legal owner. The charity will verify this so don't even think about trying to sell your neighbor's car! You don't want to get into legal trouble later on down the road.
4. After the charitable organization sells the vehicle in about 30 days or so they will notify you as to how much it was sold for.
5. You then can claim the car's resell value on your tax return as a charitable donation.
6. In order to claim the tax deduction for the car, you must have a signed receipt or notification from the charity that recognizes the car donation.
Donating your car to charity is unquestionably something which you should think about. You'd not only be providing a useful item to people that are needing assistance, but you would also in addition have the ability to save a little money with the car donation tax deduction you'll be receiving.
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