Donating your car has become the cool way of getting rid of your car fast and supporting the local community. It also is a shortcut to selling your car. If you are considering to donate your car, you may be asking how you donate your car?
Things You Will NeedYou will need a car, truck, van, minivan, trailer, RV, bus or motorcycle. You will need information about your vehicle such as the year and mileage. You also will need to know the blue book value of your car. Your vehicle does not have to run to be accepted. Usually car donation centers offer free towing services.
How to Donate Your CarFind a trustworthy charity that accepts car donations. Here are some things to watch while doing your research:1. Verify that the charity is a registered nonprofit 501-C3 organization . That means that the charity is approved by the IRS to receive tax deductible donations. If they are not a 501-C3 charity, your donation may go right into their pockets. 2. Make sure that the non-profit charity has free towing services.
How to Donate a CarFigure out the fair market value of your car. The IRS discloses that the donor is responsible for determining the fair market value of your vehicle.
1. Go to the website for Kelley's Blue Book to determine the value of your car.
2. Always make a lower estimate for the value of your car because the IRS will never use the highest amount. Car accessories, mileage and condition will also affect the value of your car. The total amount of your tax deduction that your will receive is based on the final sales price of your vehicle.
Car Donation FormFill out a car donation form. This is where you enter information about your vehicle such as model, year and mileage.
How to Donate a CarThe selected towing company will give you a tax deduction receipt. If the car is worth more than $500, the IRS will require an IRS Form 8283.
How to Donate your CarYour vehicle is than sold at an car auction. Call the car donation organization to find out any other information about your car.You will then receive the tax deduction on the next tax return. I hope you found this article on how to donate a car helpful. The car donation process is somewhat easy. The proceeds of your donation help the less fortunate find a vehicle they can afford. The proceeds also help support the charity you choose to donate to.
Tips & WarningsMake sure that the receipt has the organizations name and address, fair market value for your car and the date. Also, call the DMV and insurance company to let them know you are no longer the owner of the vehicle.