There are a few important principles when you go for vehicle donation. The first step is obviously to find a charity that accepts vehicle donation and also has a donation office close to your house or at least in the same city. You need to choose only qualified charity organizations for vehicle donation as per 501(c)3. Although a lot of people tend to abuse the free towing and pickup service that is available for vehicle donation, you should request for it online only if you need it. If you request for such services you will cost the charity some money, which would obviously deduct the value of your charitable contribution, especially when you file for IRS tax deductions for vehicle donation. You could even go a step further and get the car fixed before vehicle donation. After all, if the car is auctioned and it fetches a good price, you will stand to benefit.
Transfer Ownership For Vehicle Donation
When you do vehicle donation, it is important to transfer the ownership of the car and hence you should possess the certificate of title. An important principle of vehicle donation is to cancel all the insurance policies associated with the car as you would not want to pay for someone else’s damages. It is also important to keep track of what your vehicle donation achieves for the charity. In other words, when people go for vehicle donation of RV, trailers, trucks, cars or even their boats, not all are auctioned off by the charity. Some are actually used for projects such as transporting medical staff and supplies to remote areas that need help. In such cases, the charity will not be able to provide you with a statement of sale for your vehicle donation, which is important for filing deductions.
Tax Deductions For Vehicle Donation
In those scenarios, you are allowed by IRS to claim deductions for vehicle donation equivalent to the fair market value of the car. An important principle of vehicle donation is to not inflate the market value especially with the help of inaccurate pricing quoted in the Kelly Blue Book. You might have to even show the cost estimation process for claiming tax deductions for your vehicle donation in case you are providing your own estimation.
For more information about vehicle donation, please visit: GoodwillCarDonations.org