Donate My Car - my car donation can be profitable!
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Donate my car?
Donate my car ? You must be crazy! Now it may be worthwihile for you to think again, as this
can be a benefit for all concerned. If I donate my car to a registered charity, I can get a tax receipt
that I can use to reduce my taxes. The charity receives a donation they can either sell or use themselves, so every
one is happy. What could be better than that? It has always been a problem in knowing what to do with old beaters,
so now I can just donate my car when it is no longer of use to me, and a charity will benefit too!
Car Donation Facts For You
by Christopher Luck
Donating money and good is a great way to help out worthy causes while still helping yourself out on your taxes.
Car donation is no different. Even though some of the car donation tax laws changed a few years back, this is still
a great way to help yourself and others. So if you have an old car and just arent quite sure what to do with it,
then consider a charitable donation of your vehicle.
As of 2005, the laws for car donation changed. For motor vehicles, boats, and airplanes that are valued at more
than $500, things are a bit different than before. The allowable amount of the deduction is now limited to whatever
amount the charity sells it for. The charity to which your car donation is made is required to provide you with
written acknowledgement of your donation within 30 days of you making it. If the charity provides any false or
exaggerated acknowledgement, they can be penalized.
As of the first of January in 2005, when you make a car donation, the tax write off is based on how the charity
uses your donated car. If it is sold, you can deduct the gross sale price. If, on the other hand, the charity uses
the car for what the new law calls 'significant' tax-approved work of charity, you would be able to claim the
market value of the vehicle. Again, however, there are stiff penalties for falsified documents.
| If I can donate my car and get a receipt for anything to reduce my taxes, then it is
worthwhile! ~ Site Editor |
Some of the charities, despite acknowledging that the old laws had problems, are skeptical of the new car
donation laws. Many of these organizations are concerned about what will happen when the tax deduction
responsibility is put in the hands of the charities rather than the donors. A group of them actually sent a letter
to the Treasury Secretary suggesting that people may be discouraged from donating when they are unaware of their
deduction amount. Not being able to weigh the cost to the benefit of donation may discourage some auto
donations.
If you do choose to make a car donation, you will find that the process is very easy. Most charities that offer
to take your vehicle will have information on line or via phone about it. In many cases, in fact, you can fill out
the appropriate forms on line to get the process underway. You also will likely not even have to be home and the
vehicle may not even need to be in working condition. Many charities will come and toe your car away if you can
simply leave the title under a floor mat along with the key and put it somewhere accessible http://www.napadaily.com/category/automotive-guides. As
soon as the car is sold, you will receive a document in the mail letting you know how much you can write off of
your taxes, legally.
Since many charities rely on donations of all sorts: clothing, cars, money, and even appliances, think about
what you are doing when you make an auto donation. By donating your vehicle, you are helping out a worthy cause of
your choice. In addition, you are helping yourself out. Sure, the tax laws have changed, but you can still benefit
from your donation. The car doesnt have to run to be eligible, so your write off might still be more than selling
it for junk. So feel good about yourself, help your tax line, and get rid of that old junker by donating your
car.
Now, if I can donate my car to charity, I am sure there are many others who will do the same, for
the good of all.
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