When most of us think about charity and our donations, we don’t like to think about what kind of benefits they could have for us. After all, the entire idea behind philanthropy is to give selflessly, without having to worry about what we get in return. The thing is, with certain donations, you can actually take advantage of a very important tax write-off. This is especially true if you choose to donate your car. Car donation laws make it so that you are able to attain certain tax advantages as a product of your generosity.
When you donate a car to charity, you can claim the value of that car on your taxes. Recently, there has been something of a crack down on this because some people were using their car donation to lie on their tax returns. You are allowed to write off only the actual market value of the vehicle when you make a vehicle donation. If I were to donate my car to charity, I would need to find out exactly how much a person would expect to be able to buy that car for on the open market. There are certain ways to figure this out, and it’s very important.
All sorts of charities are taking auto donations, including The American Red Cross and Goodwill Industries. These places can use your old car for the purposes of helping less fortunate people in your community. You will benefit greatly when you donate a used car if the charity you donate to is able to sell your vehicle for a good price. You will benefit greatly if they are able to attain a price higher than typical market value, as that will be reflected as the value on your tax return. You must make sure, however, that they are planning on selling the vehicle for at least market value, though, as a lower figure will cost you potential tax savings.