Donating an auto to charity is an amazing thing for various reasons. You can donate all sorts of auto to charity. Even if your vehicle is completely wrecked, charities will be glad to receive it. They sell your old vehicles and use the money for various charitable, religious or educational purposes. You get a tax deduction when you donate an auto to charity and the charity also benefits from your donation.

However, there are some things that you need to keep in mind when you donate an auto to charity:

You must have ownership documents of the vehicle if you wish to donate the auto to charity.

You must be careful while selecting a charity to donate your auto to charity if you want to claim a tax deduction. Make sure that the charity you are donating to is a qualified organization.

Make sure to find out the fair market value of your car as the maximum tax deduction you can get is the amount your car will fetch. You can use the Kelley Blue Book or a guide from the National Auto Dealer’s Association to find out the correct market value of your vehicle. While calculation, the fair market price along with the car model and year, date, mileage and condition of the car should also be considered.

You will also need a written acknowledgement from the charity if you wish to claim tax deduction of greater than $250.

If your car is worth more than five thousand dollars, you will need an independent appraisal. You must also submit Section B of Internal revenue Service form 8283.

The most common triggers to an audit by the Internal Revenue Service are non-cash donations so keep records of the value of the vehicle while donating auto to charity.

Donating your old auto to charity is the best decision you’ll ever make. If you donate an auto to charity, despite all these restrictions you get many benefits. You get to help out people in need while at the same time, you can save a little money by auto donation tax deduction.

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