For your benefit we have collected a number of common questions and answers regarding car donations.
Question: I want to donate my car, but I'm afraid of incurring more taxes for doing so?
Answer: On the contrary, donors will automatically qualify for a tax reduction, the moment a car donation is officially completed. And the process is relatively easy. The only firm requirement is for the title or ownership of the vehicle to be present, for most States. In cases of lost title, the donor can apply for a replacement with the Motor Vehicle Department in your area. And there are cases that donations are allowed sans the title, as long as the certain forms are filled in.
The tax deduction for your car donation was made possible under the American Jobs Creation Act of 2004.
Question: I really want to donate my car, but will this be accepted?
Answer: Normally there is nothing that's not accepted by car donation services. Usually there is ready for shipment to targeted beneficiary organizations boats (yes boats, any means of transportation), cars, trucks, vans, fleet vehicles, trailers, motorcycles, and even RV's.
But to save all parties from trouble, a requirement usually is that your car donation should not incur additional cost other than the necessary. A car will be accepted even if it's not running anymore, as long as it can be repaired.
Question: If I donate my car, how is the tax deduction amount determined?
The tax deduction will be based on the actual sale price of your car. Vehicles that sell for over $500 entitle you to a deduction equal to the sale price. For most cases, the minimum tax deduction for any car is $500. We can assist you in determining the market value of your car, if you say so.
It should also be clear that to qualify for the deduction, you must not receive in exchange for your car, any goods from us or from the nonprofit organization of your choice.
Question: I'm having few doubts, on what would happened if I finally donate my car, will it not be used for profit purposes?
Answer: Your car, or whatever vehicle, is usually sold at auction. But this is just for the purpose of transforming your favorite car into a more usable item. Some of our beneficiaries may not need a car, but cash for their non-profit work of service. They may be engaged in environmental works in which equipments, other than vehicles, are most needed. Transforming your car into cash will facilitate this need faster.
And even if you have a charity or nonprofit organization of your choice, most car donation services will facilitate the transfer of your car to them. In case that the auction of your car will yield greater value, and naturally be chosen, the charity of your choice will receive the greater part of the proceed. They will not even need to do anything because will process all needed documentation or the auction, and the delivery the proceed.
Thursday, April 19, 2012
Wondering What To Do With That Old Car, Why Not Donate It?
How many cars do you have in the driveway? One, two, maybe more? Do you use them all? Are they all really necessary? While it may seem that you need each car, it may be that having more than one is actually costing you more than you think.
Consider how much the insurance is costing you on that second car. Couldn't that money be better spent elsewhere? Do you have children? Will they be going to college? The money that you are spending on insurance could be saved for a college education. College isn't getting any cheaper; in fact, the prices are climbing more every year.
Here is a crazy idea, why not donate a car to a charitable organization?
Are you too busy to try to sell the car?
Is there any use for the old car?
There are organizations that would be willing to tow it away for you for the donation.
What are the incentives to donating a car?
Helping people in need (obviously).
An excellent chance that you could write off the resale value of the car as a tax deduction.
The organization would more than likely be very willing to let you know what price they received for the car when they sold it.
You in turn, would supply this information to the person who does your taxes so it could be put in your tax return.
In other words, this helps you as well as the organization.
A car donation works basically the same as any other donation with the exception that the organization will sell the car and then use the money that they receive for the car for something good. The organizations can be for anything. They can be cancer organizations, homeless organizations, Make a Wish type organizations, etc.
When you donate the car it is considered a donation for what the current Kelley Blue Book value is. The mileage is also considered in the value of the car. When you donate the car the organization will give you a receipt for the car with the current Blue Book value on the receipt. This helps in showing that the donation was a legitimate donation especially if the name and address of the organization is on the receipt. Another situation where a couple of bad apples have spoiled the whole bunch, some people have made up deductions so it is always a good idea to have proof.
If the person would sell the car and get more than the Blue Book value for the car they would have to report that as a gain and then report that on their taxes and actually have to pay taxes on that gain. But, if the person would get less than the Blue Book value the person would not be able to report that as a loss unless of course they were in the business of selling cars. In other words, a car salesman could report that as a loss but a grocery store owner could not.
Consider how much the insurance is costing you on that second car. Couldn't that money be better spent elsewhere? Do you have children? Will they be going to college? The money that you are spending on insurance could be saved for a college education. College isn't getting any cheaper; in fact, the prices are climbing more every year.
Here is a crazy idea, why not donate a car to a charitable organization?
Are you too busy to try to sell the car?
Is there any use for the old car?
There are organizations that would be willing to tow it away for you for the donation.
What are the incentives to donating a car?
Helping people in need (obviously).
An excellent chance that you could write off the resale value of the car as a tax deduction.
The organization would more than likely be very willing to let you know what price they received for the car when they sold it.
You in turn, would supply this information to the person who does your taxes so it could be put in your tax return.
In other words, this helps you as well as the organization.
A car donation works basically the same as any other donation with the exception that the organization will sell the car and then use the money that they receive for the car for something good. The organizations can be for anything. They can be cancer organizations, homeless organizations, Make a Wish type organizations, etc.
When you donate the car it is considered a donation for what the current Kelley Blue Book value is. The mileage is also considered in the value of the car. When you donate the car the organization will give you a receipt for the car with the current Blue Book value on the receipt. This helps in showing that the donation was a legitimate donation especially if the name and address of the organization is on the receipt. Another situation where a couple of bad apples have spoiled the whole bunch, some people have made up deductions so it is always a good idea to have proof.
If the person would sell the car and get more than the Blue Book value for the car they would have to report that as a gain and then report that on their taxes and actually have to pay taxes on that gain. But, if the person would get less than the Blue Book value the person would not be able to report that as a loss unless of course they were in the business of selling cars. In other words, a car salesman could report that as a loss but a grocery store owner could not.
Car Donations Make You Money
Have you ever wondered who you might be helping if you chose to donate a car to charity? The possibilities are almost endless and the gift of a car is an incredible one for helping give people a hand up instead of a hand out.
When you think about it, in most major areas a car is vital for everything. People without decent cars cannot get to work, the grocery store, school, doctors' appointments and so on. Considering this, it's vital for just about everyone to have a vehicle to ensure their lives.
So, who could you be helping if you choose to help by donating cars to charity?
* A homeless person. It's possible that if you choose to help others by donating a car to charity that your donation would go to help a homeless person rebuild their life. Since transportation is often one of the most vital and expensive links involved in independence, the gift could go a long way in helping.
* A single mother. When it comes to buying a new car, few single mothers can afford one. Since everything that involves the children and caring for them will require transportation, a gift to charity could really help here. Donating a car to charity organizations that assist single parent families can result in a mom making sure there's food on the table and she can be available to pick up kids after school. It could mean that mother can get a job. Or, it could mean she has the freedom to go to the store or take the kids to the doctors.
* A struggling family. Donating cars to charity can even result in helping working families make ends meet. In a society that often requires two incomes to survive, two cars are almost a necessity. But, even those two are needed, it can be very hard for a family to buy and maintain two cars. When you donate a car to charity, you could really help make a difference for a family that wants to remain independent.
When you make the decision to donate a car to charity you never can tell who or how many people your gift could really help. A car is such a vital link for independence and survival in today's society, that a donation of a car to charity would mean the difference between getting by or getting ahead.
The best things about donating a car to charity are:
* It's a real hand up instead of a handout. Donating a car to charity gives someone a means to an end, but it's not the end itself.
* A sense of truly helping. Donating a car to charity is much more than just writing a check. A car is a tool a person can use to ensure a better life.
* Tax deductible. When you choose to donate a car to charity, you can see a real benefit on your taxes.
Choosing to donate a car to charity can open doors for a whole host of people. Helping a person help themselves, this kind of donation is unlike any other.
When you think about it, in most major areas a car is vital for everything. People without decent cars cannot get to work, the grocery store, school, doctors' appointments and so on. Considering this, it's vital for just about everyone to have a vehicle to ensure their lives.
So, who could you be helping if you choose to help by donating cars to charity?
* A homeless person. It's possible that if you choose to help others by donating a car to charity that your donation would go to help a homeless person rebuild their life. Since transportation is often one of the most vital and expensive links involved in independence, the gift could go a long way in helping.
* A single mother. When it comes to buying a new car, few single mothers can afford one. Since everything that involves the children and caring for them will require transportation, a gift to charity could really help here. Donating a car to charity organizations that assist single parent families can result in a mom making sure there's food on the table and she can be available to pick up kids after school. It could mean that mother can get a job. Or, it could mean she has the freedom to go to the store or take the kids to the doctors.
* A struggling family. Donating cars to charity can even result in helping working families make ends meet. In a society that often requires two incomes to survive, two cars are almost a necessity. But, even those two are needed, it can be very hard for a family to buy and maintain two cars. When you donate a car to charity, you could really help make a difference for a family that wants to remain independent.
When you make the decision to donate a car to charity you never can tell who or how many people your gift could really help. A car is such a vital link for independence and survival in today's society, that a donation of a car to charity would mean the difference between getting by or getting ahead.
The best things about donating a car to charity are:
* It's a real hand up instead of a handout. Donating a car to charity gives someone a means to an end, but it's not the end itself.
* A sense of truly helping. Donating a car to charity is much more than just writing a check. A car is a tool a person can use to ensure a better life.
* Tax deductible. When you choose to donate a car to charity, you can see a real benefit on your taxes.
Choosing to donate a car to charity can open doors for a whole host of people. Helping a person help themselves, this kind of donation is unlike any other.
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