If you have a vehicle that you don’t want to bother selling, or if you simply have a big heart and want to help your fellow Americans, you have the choice of donating your vehicle to charity.
This is an option that offers a tax write off and an easy way to give back to your community, but where do you get started?
We’ve outlined the procedure here, including all of the links you’ll need to get your car donated today.
A nice tax cut return
First and foremost, in order to benefit from the used car donation tax and reduce your taxes you must itemize your deductions. If you simply make a standardized deduction, don’t donate your car expecting to be rewarded by the government.
When appropriating an amount of worth for a donated vehicle, it is important to be realistic. Don’t necessarily trust the guy at the donation center to help you determine how much it will help come tax time.
What you need to know before you start
The IRS themselves express concern over the validity of some of the car donation programs. Be sure to know where you are donating and do some research to ensure that the service you are using is legit.
Follow these steps to donation success
Good thing the DMV offers a handy guide for donation.
Bottom line, donating your vehicle can be profitable for you and help those less fortunate, it just has to be done correctly. Remember that in any business that involves free donations of big ticket items are a target for fraudulent activity.
Be sure to only donate to those organizations the IRS or the DMV endorse.