Donate My Car In Canada
I’ve decided to donate my car in one of the major cities that I live near to, but I’m having difficulties getting all the information I need to make the best choice in this matter. The main reason for this is that most searches on the internet will give you a mix of information from North America, and so it is difficult sometimes to determine whether the rules being discussed apply to Canada, which is where I live, or to America, which is where the majority of North Americans live.
The main difference I discovered when I decided to donate my car in my town, was that the “Cash for Clunkers” programs that both Canada and the States were offering at the time were quite different in terms of how much money you could get for used cars. The US program ended over the summer, but while it was in effect it offered up to $4500 for a used car donation. This is a huge amount when you consider that the Canadian program, which is still running, only offers about $300.
If I donate my car in the United States, then the tax deduction works much in the same way that the Canadian one does. Both systems require you to itemize the vehicle and to determine the appropriate amount to claim on your tax return. Both nations also impose a general limit of $500 of a tax deduction, but that can be changed in certain situations. Usually, you are restricted to whatever is the least amount of a deduction available, but that is not surprising.
Of course if I donate my car in Canada, there is no shortage of charities that will be willing to take what I have to offer. In every major city there are numerous charities to choose from. Even if one is not interested in my junk car, there is bound to be another one nearby that will gladly take the vehicle off my hands in order to sell it for scrap. This is great because then I can get rid of a clunker that is not worth fixing up anyway, the charity will pay for the towing, and I get the satisfaction of helping out those who don’t have as much as I do.
So if I donate my car in Canada, then I will probably not get as much money as I could have if I had been able to donate my vehicle in the States in the summer of 2009. That being said, I will still be able to get a good tax deduction because our taxes are much higher here than across the border, so it works out well for me. Besides, making a donation is not supposed to be about the money, really. It should be about helping out others, since a couple of hundred dollars isn’t going to mean that much to me in the long run, whereas it could make a world of difference for someone who is really struggling.