Thinking of donating your car to charity for a nice tax deduction?
When people think of donating to charity, what comes to mind first tends to be a trip to their local clothes donation center. Clothes, furniture, books, and money are all common things to donate, but car donation is a little more unusual. Cars are one of the most popular kinds of non-cash donations — each year, Americans donate more than 200,000 old cars to certified charitable organizations. Actually donating a car to charity is usually simple: Just call the organization of your choice, and they’ll come pick it up. A donation receipt can be emailed or given on paper, and should include a bunch of information including the donor’s name, the nonprofit’s name, the date the donation was made, and how much was donated or the value of donated car. You will receive a tax receipt for the fair market value of the vehicle you donate to them which you can use on your income tax preparation as a contribution.
BENEFITS OF DONATING A CAR TO CHARITY:
Get Rid of a Vehicle You No Longer Need: Charities takes working and non-working vehicles of all kinds. You can donate your cars, trucks, SUVs, boats, vans, trailers, campers, jet skis, motorcycles, airplanes and more!
Qualify for a Possible Tax Deduction: When you file your federal taxes, you can deduct certain costs to lower your total taxable income (and therefore the total taxes you have to pay on that income).
You get to help those in need: Many lower-income earners are also qualified for better jobs than they have. However, without cars, they don't have access to these opportunities. What's more, the exhaustion, stress, and sometimes lateness or absence they bring to the job as a result of lacking reliable transportation means they don't receive the promotions they are often qualified for.
Before donating anything, it’s important to determine if you’re financially ready to do so.