Reasons to Donate Your Car

Well, the first reason to donate your car is you don't have to worry about paying for the cost of the towing! That's right; most places you donate your car to will have it towed for you. All you have to do is call their number, have the owner's slip or vehicle registration when they arrive and your old car will be towed away without fuss. Another reason to donate your car is that you can get that old eye sore out the way, help your favorite charity and get a car donation tax deduction. Great isn't it?!

Okay, so you have found a win, win situation. But you don't know how to go about selecting a charity to donate your car. Not a problem! First think of a group that you really want to help. For example: The youth. You look for a charity that specializes in helping the youth. The easiest way is to look in a charities directory in your local adds, or internet. Generally, if you call they will have the information available for you to donate your car.

Once you have found the charity and decided to donate your car, you are now ready to research information on how to get your car donation tax deduction. On average, your car donation tax deduction is the amount of money your car donation is worth at the time of your donation. So if your car donation is worth $1000 then generally your car donation tax deduction is the same amount. However, because everyone's tax situation is different, consult with an IRS tax representative concerning your car donation tax deduction write offs.

Wow! This sounds great! Now you want to know if your car has to run to be eligible. On average no. Most charities will take running or non-running vehicles. More importantly, is the car is intact with most or all of its parts.

Right! Great! Can I give to multiple charities from one car? Not all charities can, there are some charities with the program capability to allow you this option. Just make sure to ask when you call.

Also, cars are not the only type vehicle you can donate. You can donate trucks, boats, RVs, off road vehicles, and more.

Most importantly, make sure you have the appropriate paper work to prove ownership or can be used to locate documentation of ownership: Ownership Title; Vehicle Registration Renewal Notice; Vehicle Identification Number (VIN); Recent Insurance Information Card; License Plate Number.

Can I donate more than one car per year? Check with your IRS tax agent for details. Most states will allow multiple donations.

Car Donation Tax Deduction Is A Matter Of Choice

Most people do not even think of donating their used cars to charitable organizations for a tax deduction when it comes time to purchase a new one. The reason for this has to be that most wish to use the value of the vehicle to go toward paying off the new purchase. However, there are many reasons that make donating a used car to charity a great idea. The first reason of course, is the tax deduction that is gained by making a car donation.

To take advantage of a car donation tax deduction there are a few things a person will have to know about car donation tax deduction. If the value of the car is more than $5,000 a written appraisal of the vehicle will have to be obtained from a qualified appraiser. This has to be completed before the vehicle goes to the organization that it is being donated to.

Along with the written appraisal, a copy of a completed IRS Form 8283 should be provided to the organization, and the donor must receive a signed statement from the organization pertaining to the donation in order to receive the car donation tax deduction.

If the value of the car that is being donated for tax deduction purposes is $500 or less the above steps are unnecessary. The IRS will accept that value as correct.

Meeting IRS car donation tax deduction requirements will allow the donor to deduct the fair market value of the car. A sample of those requirements would be; the recipient organization makes specific use of the car, or improves the vehicle in major ways to cause it to gain in value.

It the charitable organization can do a variety of things with the vehicle in order to qualify it as a tax deduction for the donor. For instance, it can give the vehicle to an underprivileged family that has no resources for purchasing their own, or sell it at a reduced price and use the money to help the poor.

Choosing to donate a vehicle to a charitable organization, whether for car donation tax deduction purposes, or for any other reason is an honorable thing to do. The pride it gives to those who are able to it is incomparable. Helping others out of choice is the true meaning of charity. Getting a tax deduction should not be the only reason someone should take this kind of step, however, it does make the gifting an easier choice.

How to Properly Claim Your Car Donation Tax Deduction

Vehicle donation has become increasingly popular. The car donation tax deduction makes this charitable practice even more beneficial to the former car owner. However, to properly claim your car donation tax deduction the Internal Revenue Service (IRS) requires that you adhere to the following requirements:

1. A vehicle donation must be made only to a legitimate charity. To be considered a legitimate charity the group or foundation must be registered with the IRS as a non-profit corporation. This can be verified by doing a search on the IRS website. You will not receive a car donation tax credit if the charity is not registered.

2. If your vehicle donation is more than $250, but less than $500, you will only need to provide an original copy of the donation record with your tax forms to receive the car donation tax credit. This must be recorded on the letterhead of the charity. Keep a copy for your records, but submit the original to the IRS.

3. If your vehicle donation exceeds $500, but is less than $5000, you will need to complete IRS form 1098-C, copy B, and attach it to your tax forms. You will also need to submit the original receipt from the charity and proof of the fair market value of the vehicle to claim the car donation tax credit. If the value of your vehicle donation is $5000 you will need to complete and attach section A of IRS form 8283 (Non-cash Charitable Contributions)

4. If the value of your vehicle donation exceeds $5000 you must complete section B of IRS form 8283 for a non-cash charitable donation. Include proof of the value of the car and original receipt to claim your car donation tax credit. You will also be required to submit an appraisal of the vehicle that was performed by a certified appraiser. When your vehicle is appraised you must request a separate written acknowledgement from the appraiser stating that they completed the appraisal. You will attach the acknowledgement to your tax forms, not the actual appraisal. This is the only way to claim your car donation tax credit for a vehicle exceeding this amount.

The car donation tax credit has made it possible for many more charities to benefit from this type of gift. These charities use these vehicles for job training exercises (car repair and body work) and to sell later to fund their charity work.

A Vehicle Donation Is another Way to Show Love

You may have decided to purchase a new car to begin the New Year. While this is a great idea, since interest rates are way below what they have been in a very long time, what are you going to do with the car you are driving right now?

It's a well known fact that you never get the full value when you trade your old car in for a new one and selling it to someone else can be a hassle. Maybe you should consider vehicle donation as an option especially when you get a car donation tax deduction when you do.

A vehicle donation to a charity will allow them to sell that vehicle and use the money for their charitable activities, like helping the elderly with some of their expenses or a child with medical expenses. No one gives anything to charity just for tax reasons, but car donation tax deduction is a fringe benefit of giving to a great cause.

Vehicle donation may not be something that every charitable organization is able to handle; so finding one that does should be easy enough to do. Getting that car donation tax deduction will allow you to be better able to give your used car away instead of receiving the trade in value for it. Your vehicle donation can actually be more valuable that as a trade in.

The car donation tax deduction aspect of making a vehicle donation to a charitable organization is well worth the effort it takes to find a reputable organization to donate your car to. It may take some extra time to find a good organization to take your vehicle donation, but you will be glad you did when you see what they can do with the money.

You will get a car donation tax deduction for your effort and that will show up when you file your income tax return the following year. You may be surprised the savings you will receive from making your vehicle donation. Even though a car donation tax deduction may not be the main reason you would make a vehicle donation in the first place, the pride you feel from doing so will be accentuated when you do receive a car donation tax deduction.

Giving to charity has always be something to be proud of because it gives you the opportunity to do something special for those less fortunate than you are. Isn't that the real meaning of charity? Giving is also another word for love.