How To Donate A Car Home Page
How To Donate a Car
Those seeking information regarding how to donate a car are met with options that can be difficult to discern. There are organizations that facilitate the transactions between private parties and charity organizations, and there are thousands of non-profits that will gladly accept your donation. However, throughout the process, the importance of documentation cannot be stressed enough, as the IRS is tightening tax credit restrictions annually. To donate a car properly, be sure to research all of documentation that the IRS requires before you begin the process, and you’ll find that this very rewarding act benefits all parties involved. Understanding the options, organizational procedures, and tax codes will prevent any unexpected delays or nullifications of your tax claim when April 15th rolls around.
Where to Turn to Donate a Car
There are several databases on the internet that can give you factual information regarding thousands of non-profit organizations that accept donated vehicles. When turning to these resources, be sure to research the credibility of the organization. Once you have an understanding of your options, the choice is yours. Who would you like to help? Are there any organizations that you genuinely believe in the cause? The donation is yours to give, so feel free to select groups that help in ways that you respect and agree with. Now that you understand the group you’d like to donate a car to, begin researching the organizational procedures. Do they have a track record of coming up short on detailed paperwork? If so, find another beneficiary. By considering these topics throughout the process, you’ll have the best experience possible when looking to donate a car.
What You’ll Need to Donate a Car and Get Proper Tax Credits
The paperwork involved to donate a car can be a bit dizzying if you aren’t acquainted with what the IRS is expecting you to have, and what you are eligible to claim once the donation is made. First and most importantly, you should visit the IRS online and download any important forms that you’ll need. Be sure that you get everything they require as you are making the donation. Any slip up here can cause you to lose your tax credit. Once you understand what’s required, it’s time to consider how the process will go. There is 30 day window to get all the documentation from the charity, including the car’s value (which you can research yourself), the gross sale amount, or what the car will be used for. How do these things affect you? Well, if your car is valued at a market price above $500, you can only claim the gross monetary gain that the charity received upon sale. Should they decide to utilize the automobile for operational needs, which they sometimes will, you will get fair market value (consult Kelley Blue Book, for example) for your donation. In either situation, documentation from the charity is very important, and any misstep here can cost you the entire tax claim.
By paying close attention to the requirements and necessities to donate a car, you’ll ensure that everything goes off without a hitch. The benefits will resonate exactly where you intended: those in need and your tax situation. Whatever your motivation for donating, the certification of a reputable charity hinges directly on the amount of research you put in. Always keep in mind that just because a vehicle doesn’t run, it still has value. Most non-profit groups are in desperate need of aid, and every donation helps, no matter how small. Consult with the IRS online resources, visit a facilitating website, and get proper documentation from the benefitting charity, and your old car will become a life-saver for someone that needs a helping hand.
Rest assured, when you decide to donate a car it will be welcomed by a charity and help worthy causes.
The following IRS Documents may also be helpful
Charitable Contributions : Donation of Vehicles/Boats/Airplanes