Did you ever like to get rid of your car but wasn’t sure how to do it? The best thing you can do to eliminate your car is to donate it. As you donate your car to charity, you can obtain a nice tax break. Once the charity gets your car, they shall be able to sell it and use the earnings to help their cause. There are several charities, such as the Red Cross, that actually have their own used car lots to sell these donated cars. A number of charities auction the cars, or simply sell them at raffles or apply it for the organization.
The charities have their individual ways of deciding in which the individual cars should go, they don’t just flip a coin. They sort out the vehicles and distribute them to where they should go. Here’s one example of what a charity could do with a vehicle that’s just been donated. Let’s say we have a charity that is linked to different programs like giving food for the homeless, supply training to people looking for new careers and managing an education fund. What they may do is check out if the vehicle is in great working condition or not. If it performs well, they may use the car to deliver food or leased to an individual who is starting their life over.
Quite a few charities finance their work via donations so the process to donate cars was made easy to do. Besides the donation forms, all charitable organizations provide the important IRS forms that you should claim your deductions. So for you to properly receive your tax deduction, you will get all the important documentation from the charity. Depending on how the car was used, if it wasn’t sold, there must be a tax voucher, stating what the car’s worth is. The worth of the car relies on the current blue book fair market price.
You will prepare all of the facts detailing what was done in the transaction, provided by the charity. Mainly a reputable estimate of the value of the automobile, and that you weren’t repaid any money or service in exchange for the automobile. You need to obtain all this details in thirty days from the transaction or you will not be able to claim your deduction. Many people hesitate donating cars simply because they need proper documentation, but you need the same things to sell your automobile.
The beauty of donating your vehicle is that you will be able to help somebody and get something in return. Not only will you get a financial pay back, but also emotional and spiritual at the same time. As it is often such a battle for charities to raise money, you should do your part and give them your used vehicle. Whenever possible, at the time you donate your car, do it in person just for them to save on the towing fees.