Donate cars to charity to get a fair deal out of a vehicle that can no longer fetch you good money and is not worth the cost of advertising. Even wrecked cars can get some tax deduction. You can get a tax deduction equal to the fair market value of your car. Donate cars with ease by simply following these instructions:
Things Required To Donate Cars:
A computer and Internet connection
Relevant IRS forms
Kelley’s Blue Book
1. Find a charity recognized by the Internal Revenue Services. A comprehensive list of all qualified organizations is available on the official website of the Internal Revenue Services. Donate cars to only these non-profit organizations as they alone can lawfully accept tax deductible donated cars.
2. If you donate cars, find out the exact fair market value of a car. According to the IRS, you have to estimate the car’s fair market value as you’ll get a tax deduction equal to your estimate. You can use the Kelley’s’ Blue Book for this purpose. However other things such as condition and mileage of the car should also be considered while estimating the car’s value. If your car is worth more than five thousand dollars, you’ll have to get it appraised by a certified professional.
3. Make sure you receive a tax receipt from the charity with the charity’s name, federal tax ID number, date of donation, donors name and details of the car such as its year, make and model.
4. Ensure that the DMV and insurance company is aware that you do not own the vehicle anymore. Transfer the titles to the charitable institute and follow federal regulations regarding the titles and the plates of your vehicle. Preserve the tax receipt and IRS form 8283 as you’ll need them to claim a tax deduction.
Important Tips and Warnings To Donate Cars:
Religious organizations do not need to apply for an Internal Revenue Services tax exemption so as to be qualified to receive tax deductible donations.
Make sure that the organization is registered wit the IRS.
Preserve all documents and keep a thorough paper trail.
When you donate cars, find an organization that does not charge a removal fee.
If you want to donate cars, please visit www.charitydispatch.com