By donating your car, you can enjoy three offers. One is you can get rid of your good old car, the second one is helping the nonprofit organization, and the third one is saving money on taxes. Cool offers, right? But the important point is by donating your car to charity your act is known as generous act. I know after reading this, you will be thinking to donate a car today. But before that, you have to know and look for the best place to donate a car because there is some donation charity don’t work with fair policy. To know about the best charity for a car donation, there are some factors you have to look for.
Why donate your car
Before passing the American Jobs Creation Act of 2004, giving car was played as a tax deduction. Now you have to donate a car that is worth to use for charity.
If you have a car that meets all the criteria, then you have to donate the car because:
- Helping reputable car donation charities.
- If your vehicle is usable, then the charity can use the car for functional purposes like- taking patients to doctors, delivering meals, going for a good mission.
- You will not have to pay extra money to sell your car by publishing ads and face the bargain or hassles of buyers.
- The charity will take your car after you complete the donating process. But this process is not free, especially the charities that accept car donations directly. They will deduct the carrying cost from the value.
- If your car has no title, then you have to get rid of the car as it has less value in the market. Donate the broken car as it is of no use.
IRS car donation:
The donation process may seem an easy process, but if you want to use this donation process to maximize tax benefits, then you have to work with some issues:
- Don’t just depend on the vehicle donation as an only tax deduction because the IRS has some limits in your claim.
- Contact with IRS exempt organizations site to know whether your charity is qualified.
- According to IRS fair market value, the price of the vehicle must have some conditions to have the right amount of tax deduction.
- To enjoy the tax benefit, you have to submit your paperwork correctly according to IRS publication 526.
Tips for car donation:
When you are ready to donate your car, you have to look for the best charity for car donation. But sadly there are kinds of charities don’t work with fair policy. Here are some tips that you may follow while you are donating your car:
- To enjoy the maximum tax deduction, donate your car to the charity that will use the vehicle for charity purpose or a needy person who badly need a car. By this, your vehicle will get the fair market value.
- Deal with the charities that accept car donations directly.
- Ask for the IRS copy from the charity organization that will help to in tax deduct process.
- Don’t forget to take the car donation receipt.
- Complete the sections per your car value. For example, if your car is $500, then the donor has to complete the form of IRS form 8283 Section A, and if the vehicle is $5000 worth, then section B form fill-up is required. Fill the form correctly because the IRS will crosscheck the figures.
Mainly people make their donations at the end of the year. You will find various things like household things, books, etc. but among them, the car is the popular thing to donate. When you are ready to donate a car today, pick the best charity for car donation.