Charity Car Donations
Make A Charity Car Donation Today
So you’ve finally gotten that new or used car that you’ve been wanting (or needing). But now what are you going to do with that old car that it replaced? One answer you may not have considered is a charity car donation.
There are advantages in it for you, too – it’s not ALL charity.
Basically, there’s three advantages for you as a car donor: You will probably qualify for a tax deduction, you will be getting your unsightly clunker off of your property and off of the street, and you will get that good feeling that you get from doing something good. We’ll cover each one below.
Tax Deduction For Car Donation To Charity
How much of a deduction? There’s a few things you should know before you get tax deduction dollar signs in your eyes.
1 – You have to make the donation in the tax year for which you claim it.
2 – The charity must be a bonafide 501c3 charity; it must be eligible to receive tax deductible contributions. (Request a copy of their tax exempt status.)
3 – Get a receipt, of course, for your donation from the charity.
4 – If your gift is worth over $500, you have to complete IRS Form 8283 and attach it to your tax return.
5 – Regardless of its worth, you must get a written acknowledgement from the charity concerning exactly what it does with your car and how much it sold it for (if it is sold). And you must get this documentation within 30 days of your donation.
…But this info would include whether or not the charity intends to just use your car or if they are planning on improving it and then using it or improving it and selling it… which in this case they’d be required to give you documentation of how much they sold it for.
Your deduction is normally limited to $500, except in the case that the charity sold it for more. But keep in mind that your tax deduction is taken off of your taxable income – not your tax bill! Which often means that you owe just as much (unless you donate a car with higher value).
The second advantage to a charity car donation is that you get that unsightly old junk heap out of your front yard, driveway, or street in front of your house. Even if it isn’t necessarily a “junk heap,” it frees up room for your new car. And if it IS an old clunker, you will have just improved your neighborhood!
And last, but certainly NOT least, you will get that good feeling of having done something good! Because there are people out there who truly do need your car. Not everyone who gets goodwill car donations are lazy, welfare-sucking leaches. There are many people who just have been victims of bad luck, bad health, crime, etc. Remember that many of us are only a paycheck or two from being in the same boat with them.
So go ahead and make a charity car donation and get three things done at once. It’s often easier than finding a buyer or worse – having to fix it up and then find a buyer. (What a pain.) Save yourself time and trouble while doing something good!