Let’s face it: many of us may not be rich, but if we have a sheltered place to sleep every night and food to put on the table, we are better than most people in this world. And putting an old car in the hands of unhappy people is a great way to “give”. Where to donate a car?
Don’t know how and where to transfer your car? Let a car donation help you get the job done well. Choose your charity. Give the car to charity today and get not only the tax break you deserve, but also peace.
Make sure your intended organization is 501 (c) (3)
Although many organizations can apply for nonprofit status, donations to 501 (c) (4) organizations are generally not tax deductible. These are political organizations authorized to lobby our government; like disabled American veterans or the National Rifle Association. Make sure the intended recipient has the status of 501 (c) (3) public charity.
Complete your documentation
Non-cash donations are the most common triggers for IRS audits, so it’s important to keep accurate documentation of your car donation. In particular, if your car is worth over $ 250, you must obtain and keep a written confirmation from the charity. Additionally, if your car is worth more than $ 500, you must complete section A of Form IRS 8283 and attach it to your annual taxes. In addition, if your car is worth over $ 5,000, you must have an independent quote and complete section B of IRS 8283.
What happens to donated cars?
About half of our cars are sold to licensed dealers at wholesale auctions and are reused for transport. The other half is usually transported to accident car depots, where all car parts, batteries, tires and reusable fluids are removed. Vehicles that can be recycled are crushed, crushed and processed into steel.
Car recycling maintains a large amount of steel in landfills – enough to build nearly 45,000 steel-built homes each year. Each year’s energy savings are enough to power around 18 million homes!
How much tax deduction can I expect for my old car?
The answer, of course, depends on several things – hey, we’re talking about the IRS! But in short, you have a $ 500 limit, unless a charity sells your car for more; then you can apply for this amount. Remember, however, that your tax deduction is for taxable income – it is not deducted directly from what you owe.
Other things about charitable donations: If a charity sells a car for, say, $ 200, but its actual value (found by NADA – National Auto Dealers Association or Kelly Blue Book) is $ 500, you can apply for a higher amount. Also, if a charity improves your donated car, you can apply for part of this update.
In any case, you will do good to society, helping someone who really can use your car, and the old car pulled out of the parking lot and out of the street to make room for a new car!