You may have heard that giving a vehicle to charity is a possibility if you are trying to get rid of one that you own and are considering doing so. In spite of the fact that doing so will make you feel better about yourself and will, in most cases, be less of a hassle than attempting to sell the vehicle on your own, there are a few things that you need to keep in mind if you choose to go with this option. If you decide to go with this option, you need to sell your car for cash. If you think that donating your car is the best choice for you, then the following is a list of some of the more frequent things that you should be aware of, as well as three excellent possibilities.
Choose Option 1 and go to DonateACar.com
DonateACar.com is an option for donating a vehicle that is both simple and uncomplicated to utilize. This website gives you the opportunity to select a charity from a list of hundreds that you would like to support, and then it arranges for free pickup the following business day on your behalf, saving you the trouble of having to wade through the specifics of all the paperwork and tax information on your own. DonateACar.com will then sell the vehicle on behalf of the charity, and you could even be able to claim a tax benefit for your contribution. If you are looking to move things along fast and do not want to be troubled with additional paperwork and research, this is a great choice for you to consider.Option 2: Donate Automobiles to a Charitable Organization
This is the spot for you if you want the peace of mind of knowing that the vehicle you donate will be put to good use. Families in need get vehicles that have been donated to Charity Cars through the organization's program and are in good functioning condition. If your vehicle meets the requirements of Charity Cars, you can have peace of mind knowing that a family who is less fortunate will be given the opportunity to drive it. On the other hand, if your vehicle is not as desirable, the organization will sell it and use the proceeds to help fund its program. In either case, it is a win-win situation, and you can rest assured that you are contributing to a worthy cause: Charity Navigator, which assigns grades to charities based on how much of the money they donate actually goes toward helping those in need as opposed to covering administrative costs, has given this group an astoundingly high score that is very close to being flawless.Option 3: You can sell your vehicle on your own and donate the money you make
This choice is probably not for you if you own a rust bucket of a vehicle that no self-respecting charity in its right mind would accept as a donation. On the other hand, if you have a car that is only somewhat used and you want to maximize the tax reduction you get, a much more effective tax plan would probably be to sell the vehicle on your own and give the earnings to a charitable organization. If you were limited to selecting a charity that took vehicle donations, you would have a much more limited selection of organizations from which to choose when making a donation.Maintain All Necessary Documentation
When it comes to filing your taxes, you absolutely must have detailed documentation of the donation in your possession. You can find a list of things you'll need to donate a vehicle in the guide that the Internal Revenue Service provides, but the most important thing is to make sure that you deal with a legal charity that is aware of the rules and will be happy to assist you in meeting them.You are required to itemize your deductions in order to qualify for a tax break
If you itemize your deductions, which is the only method to earn a tax benefit for donating your automobile, unfortunately, and if your total itemized deductions are higher than the amount you can deduct using the standard deduction, then you will save money on your taxes. If you have contributed a significant amount of money to a charitable organization, then it makes sense to itemize your deductions; but, if you have not done so, then you will save more money by staying with the standard deduction.Donate to a Charity That Has Been Verified
If you want to take advantage of the itemized tax deduction that comes with donating a vehicle, one of the conditions you must meet is that the organization to which you gave the vehicle must be approved by the Internal Revenue Service as either a 501(c)(3) or a religious institution. You can check the information on the IRS website if you are unsure. In most cases, you won't be able to deduct the item's current fair market value. You won't be able to take a tax deduction for the amount of money a private seller would offer you for your vehicle if you donate it to a charity, and the vast majority of the time, you won't be able to do either of those things if you donate your automobile to a charity. In order to do so, you will be required to fulfill a number of extremely precise conditions, and if the charity decides to auction off your car, you will only be entitled to deduct the amount that it brings in. In the event that the value is greater than $500, you will additionally be required to submit Form 8283.