Archive for the ‘Tax Benefits’ Category

Tis The Season To Be Donating A Car

Friday, December 24th, 2010

The holidays usually bring out the best in everyone, with many individuals donating to charities or volunteering their time to help out others who are less fortunate. There are many great reasons why you should consider donating your car to charity this time of year, and the fact that it is the holidays is only one of them.

Holiday Giving

No matter your religion or lack thereof, we could all use a little more kindness in the world, and when you donate a car, you are helping someone who desperately needs it while helping yourself at the same time. With a car donation to our organization, a substantial portion of the proceeds go directly to children who aren’t in a position to help themselves. On top of that, you also receive a tax deduction from the government, so you don’t have anything to lose besides that piece of junk that has taken over your garage.

There are four main benefits to donating your car now. It helps the charities and the individuals it represents, it helps you, it helps spread the cheer this holiday season and also it helps to donate now because the deadline is quickly approaching to donate your car for this year’s tax deductions.

Whether this is something you have been considering for some time or it is something that you only recently thought of, it is always a good idea. The end of the year is coming up fast, and there is no time like the present to give a gift of your own.

Countdown to Final 2010 Car Donation Tax Deductions

Friday, December 10th, 2010

The year is quickly winding down. The holiday season is here, and we are all extremely busy with various commitments and activities. Before you know it, the year will be over and you may have missed your chance to donate a car to charity. This, of course, means you may have also missed your chance to take a sizeable tax deduction. If you get everything in order now, though, you can do some good for some worthy and needy organizations, and still make sure you can claim the proper deduction on this year’s returns.

December 31 is the cutoff day for getting a car donation tax deduction this year. Time may be running out, but if you start getting ready now, you can still make sure that the entire process goes smoothly.

Starting the Process

The holidays are always really busy, but if you take the time to get everything in order, you won’t run into any snags at the last minute. We previously covered some of the IRS tips for making charitable donations, and this is a great place to get started.

In basic terms, you need to get all your documentation in order and ready to go. You are going to have to itemize the contribution on Form 1040, Schedule A, and you will be required to keep records of donation and the amount you received. Keep these documents safe, because even though your car donation has to be made by the end of the year, you may not actually file your returns until next April. If you lose those documents between now and then, you could be in for some hard times down the road.

Planning Ahead

With only days left before the end of the year, you have to plan ahead to get the most out of donating a car. It could take some time to get an appraisal if you have a particularly valuable car, or the tow services might be backed up because you’re not the only one trying to get a last minute donation in before the end of the year. Now is the time to make your donations. There are many worthy causes out there that need your help, and if you want to maximize your returns, be sure to get it done as fast as you can.

It’s a Tough Time for Car Donation Nonprofits

Monday, December 6th, 2010

But, according to a study done by the Nonprofit Research Collaborative, things are starting to get a little better. This report showed that about a third of the charities in America had an increase in donations throughout the first nine months of 2010. Unfortunately, this increase hasn’t been enough to keep up with the demand for charitable services.

Just like many other industries, nonprofit companies have been hit hard by the recession. They rely on the charity of others to generate their operational budgets, and when economic times are tough, people are less likely to make a donation. Of course, when economic times are tough, there is usually more unemployment and increasing need for the services these nonprofit organizations provide.

Last year was one of the hardest ones in a long time. Our giving was at the lowest it had been since 1956. This can be very troubling for both the nonprofit organizations and the people who rely on their services. And that is why this slight increase in giving has been viewed by some as a positive sign for the future.

Despite the increase in car donations, worthy nonprofit organizations always need more. There might be some positive signs in the economy, but that doesn’t mean everyone suddenly has more money that they can part with. Things still seem a little shaky, and it’s this kind of uncertainty that makes people hesitate about making charitable donations.

This is where donating a car to charity can make a real difference. You don’t always have to donate cash when you are looking for ways to help these important organizations. If you have a vehicle that has reached the end of its useful life, or you don’t think you’d get much for it on a trade it, you can always donate a car for a tax deduction and help this trend continue.

Tips and Tricks: Car Donations Made Easy

Friday, November 19th, 2010

We like to keep things simple, so when we found this video on car donations, we thought it had some great basic information to share.

Some highlights to take away from the video:

  1. Research the car donation charity to make sure it is legitimate.
  1. Figure out what percentage of the proceeds go to the charity, and how much goes towards costs of operating the business.
  2. Get the title of ownership for your vehicle.
  3. Complete their requested information and provide your contact information.
  4. Sign your title over to the charity and do not leave that portion blank.

We’re here for you if you have any questions, so don’t hesitate to ask! Now is a great time to donate a car to charity, and as the year comes to a close, you need to think about a car donation tax deduction for this year. It’s never too late to do a great thing.

Get Your Car Donation Tax Deduction

Friday, October 29th, 2010

Getting in Your Deduction

The year is winding down, and as November gets started and the holiday season begins to claim our attention, the idea of paying our taxes gets pushed to the bottom of the priority list. However, if you are sitting on a vehicle that has seen better days or you intend to donate a car for the tax deduction, it has to be done before December 31 at 11:59pm.

If you are going to donate a car and take a deduction on your 2010 taxes, you should start the process as soon as possible. Right now, there are a lot of people who are thinking about donating their own cars at the last minute, and soon it will be difficult to set an appointment for pickup that fits your schedule, and you are going to feel rushed and pressured to get all the paperwork in order. December is coming faster than you think, and you don’t want to let your car donation tax deduction get lost in the holiday rush.

Tax Deduction

Get Organized

We’ve given a lot of car donation tips and information on this blog, and by adhering to these practices and starting the process as early as possible you can make the most of your car donation tax deduction. Wondering where to get started? Take a moment and review some of these important posts:

Just remember, when you are planning on taking a car donation tax deduction, you should get as much information as you can before you start the process. However, you should also remember that we’re ready to provide all the support and help we can to make this experience as simple and painless as possible.

To Haggle or to Donate: This is the Question

Wednesday, October 20th, 2010

When it’s time to get rid of your old car, there are a few options available to you. For example, you could make a car donation, or you could sell it yourself and try to make some money from it. Unfortunately, this means you are opening your door to the hagglers – those people who only see this as an opportunity to exercise their skills and get the best deal possible. And, of course, the best deal for them means less profit for you.

The Haggler Mentality

So you’ve decided to sell your car yourself, and your first customer shows up at your door to inspect the vehicle. This is fine, you’re thinking, because you haven’t noticed the glint in his or her eye. You don’t realize that the haggler is more interested in getting a good deal than a good car.

The Haggler hasn’t come to your house to see if they like your car, or if it is as reliable as you say. They are here to talk down your price. They have a strategy, and they look forward to the experience of telling their friends how much of a discount you gave them.

They will have done their research, and they will know exactly what your car should be worth. They will plan for what they consider a great deal, good deal, and mediocre deal, and if you can’t come to an agreement that is above what they consider mediocre, they will probably walk away. You might even get treated to a little bit of a show, as they make it clear that they are more than willing to walk away from their offer if you don’t meet their price.

Unless you have your own set of haggling skills, this can be a tiresome practice that won’t do anything but use up your time and drain your profits.

The Charitable Mentality

There are a lot of reasons someone might choose to donate a car to charity instead. The most obvious reason, though, is the opportunity to do something good for an organization that relies on the generosity of others.

Donating to a charity is also a very convenient way to get rid of that old car without getting caught up in the long, drawn-out process of selling it on your own. It won’t matter what condition it’s in, you can still make a donation to help a worthy organization, and you can still receive some financial benefits from the allowable tax deduction.

Car Donation Tax Deductions for 2010

Wednesday, September 22nd, 2010

It’s already September, and 2010 is quickly drawing to a close. With 2010 almost over, it’s time for you to start thinking about any donations that will affect your taxes for the year. This April 15th, you want to get a return, and with a car donation, that becomes more of a possibility.

By donating a car to charity, you can claim a tax rebate. This is one of the larger tax deductions you can take, so if you have a clunker on your hands, you can directly benefit while helping out those in need. When you donate before the end of the year, you can claim the value (up to $500) for a tax deduction.

Donating a car helps provide financial support to charities so that they can continue giving the support they freely give to those in need. You hardly even need to lift a finger except to call to have your car picked up. We will do all the rest of the work for you, and in no time at all, you can get that old car off your driveway.

If you have a newer car that can sell for over $500, then you can still use it for a tax deduction. You will get an IRS form mailed to you with the amount of the sale, and even if it sells after April 15th, you can amend your form in order to get the full amount deducted.

You’re helping your own wallet, you’re helping charities, and you’re even helping the environment by upgrading to a more fuel efficient car, but in order to get the tax deduction for 2010, you need to act now.

When Is It A Good Time To Donate A Car?

Monday, August 30th, 2010

Technically speaking, you have between now and midnight on December 31 to donate a car if you plan on taking the tax deduction for 2010. That does not, however, imply that it’s okay – or even a good idea – to wait until December to start the donation process.

The summer months are actually the perfect time to start thinking about your car donation tax deduction. It may seem like the due date is months away, but you can take advantage of the longer days and the nicer weather to get your car ready to go. More than that, the towing companies will be available at your convenience, and you won’t have to fight with all the other people trying to donate their cars at the same time.

The “holiday rush” is always a stressful period, whether you are shopping for gifts or doing your taxes. This is not the time to try and donate a car for your deduction. It’s one thing to run to the accountant at the last minute to get your taxes prepared, but it’s a different thing entirely to try and contact a charity or car donation agency and get your car towed, gather the necessary documentation, wait for the final sale of the car and get the necessary receipts at the last minute. Planning ahead will make tax season a far more manageable experience.

Of course, if you do take care of the car donation during the summer months, you will be responsible for keeping track of your receipts and documentation for a while. You should always keep your tax documents together so that when the time comes you won’t have to run around trying to pull together everything you need to get the best deduction possible. Many of us don’t like to think or plan this far ahead, but when everything is said and done, you will be grateful that you did.