| Why on earth would someone want to donate a car? | | | | need to do any repairs, it will be deducted from you |
| You might ask this question, but there are many | | | | tax rebate and added to the sale price. This means |
| reasons, including tax benefits, being charitable or | | | | you can't profit from sending in a broke down vehicle |
| saving time. Perhaps your vehicle isn't worth much to | | | | in bad need of repair expecting to deduct the full sale |
| you, but having it sold for charity is worth a lot to them. | | | | value once it has been fixed. |
| The IRS will give a tax refund of $500 or the sale | | | | This can be a great option if you are short on cash |
| value of the car if you decide to donate it. You fill out a | | | | and want to sell your car but need a couple of repairs. |
| car donation form and you can allocate your charity | | | | Be upfront with the charity car dealer and let them |
| from a list of eligible organizations that you want the | | | | know the problems. Tell them you are happy for them |
| sale to benefit. You will receive a receipt that qualifies | | | | to deduct the costs of fixing the problems from your |
| you for the IRS tax rebate, so there is a guaranteed | | | | tax rebate, and they will appreciate your honesty. |
| $500 for your car, possibly more. There will be no | | | | Charity car dealers will often have all the paperwork |
| hassles, no running ads in the newspaper and having | | | | you need to apply for your car donation tax benefit on |
| people come over to test drive the vehicle and no | | | | site. |
| worries about trying to barter the price or having to | | | | It's not all about the tax benefits though. Donating your |
| pay for last minute repairs. | | | | car is a rewarding and charitable thing to do. The |
| Most charities will choose to sell the donated vehicle, in | | | | money raised, sometimes thousands, is donated to |
| which case you can deduct the amount they receive | | | | your charity of choice, whether directly from you or |
| for it. If they decide to use the vehicle for a purpose | | | | through a charity car dealership. That is a lot of meals |
| within the charity, you will be able to claim the fair and | | | | or clothes or money towards research or whatever |
| average market value at the time you donated the | | | | the charity of your choice contributes to. Not all |
| car. They will take into account the current condition of | | | | charities do fall under the qualification for the tax |
| the car and how much you could get if you sold it. | | | | rebate, but most do and the lists are available from the |
| That means if there is damage or if it needs repairs, it | | | | IRS website or the charity dealerships. |
| will be deducted from the value for your car donation | | | | Next time you are considering selling your vehicle, think |
| tax rebate. | | | | about a charity donation. If you do donate your car, |
| If the vehicle sells for or is worth more than five | | | | there are definite benefits for the organization of your |
| thousand dollars, you need to fill out an 8283 and 1040 | | | | choosing and yourself at tax time. You may even |
| form, plus have an official written valuation, and your | | | | decide to do it close to the end of the financial year so |
| form needs to be authorized at the highest levels. If | | | | it doesn't take too long for you to see the refund! |
| the value or sale price is between $500 and $5000, | | | | Alternatively the money can come off your tax debt! It |
| you would fill in the 8283 form and the standard 1040 | | | | is like having an easy sale for your car but just |
| that is for all vehicle donations, but you do not need the | | | | receiving the money for it a while later. |
| written appraisal. For cars worth under $500 or sold | | | | But instead of grinding the figures and crunching the |
| for that amount you would fill in a 1040 only, along with | | | | numbers, why not make the decision from your heart? |
| a written acknowledgment from the charity as to the | | | | You will get some reimbursement, less hassle, and be |
| sale or the use of the vehicle. | | | | doing a very good deed for those in need. Be |
| Donating a car to a charity car yard can be a lot | | | | spontaneous and giving, and next time you are |
| easier. Simply choosing the charity and leaving the car | | | | changing over vehicle, donate your used car to an |
| with them to sell saves you possible hassle. If they | | | | eligible charity of your choice. |