Donate A Car For A Tax Deduction
For many years now, it has been possible to receive a sizable tax deduction for donating a car to a charity. The rules for a car donation tax deduction, though, have changed over time to accommodate some new developments and handle the way people were taking that deduction.
How is The Value of My Car Determined?
The IRS allows a tax deduction of:
a) The value of your vehicle up to $500. It is up to the donor to determine the fair market value.
b) The amount we sell your vehicle for – if it is more than $500.
We are 501(c)(3) charitable organization. You should check with your tax advisor or accountant to determine the amount of your benefit.
You can see this information on the IRS website at a Donors Guide to Car Donation. http://www.irs.gov/pub/irs-pdf/p4303.pdf
Why Donating Your Car Works
Many people choose to donate a car for a tax deduction because it is much more convenient than selling the car on their own or trading it to a dealership. Selling a vehicle requires dealing with strangers showing up at your door, haggling over prices, listing it on various websites, and taking care of many other necessities after the car is sold. Sometimes this can be more trouble than it’s worth. It doesn’t get any better for some people trying to trade in their car. Many people even dread the prospect of trying to get fair value for their vehicle from their car dealer, and there are a lot of dealers that simply don’t want to deal with cars that are too old or too run-down.
The simple and easy way to deal with your old or unused vehicle is to donate it to a charitable organization. This route is about more than a car donation tax deduction – it is about offering your car to people, families, or organizations that need some help. Whether they need a working vehicle or if they would benefit more from the proceeds from the sale of your car, this method works because people know they can make a difference.
We Can Help
If you are ready to donate your car, get a sizeable tax deduction, and make sure that your car is still doing some good, simply fill out the car donation forms and we will help you get started. We will work with you every step of the way and ensure that you maximize your deduction on this year’s taxes.