Friday, March 25, 2016

Donate Car: Frequently Asked Questions

Donate Car: Frequently Asked Questions

If you are looking to help a charity in need of financial contributions, then consider donating your vehicle. The charity can auction off the vehicle and use the proceeds to benefit programs. The entire process is rather straightforward and most charities will be extremely happy to receive your donation.

If you are looking to donate car, here are answers to frequently asked questions about the process.

What Vehicles Can I Donate?

That depends on the actual charity. Most are able to accept all types of vehicles, including trucks, boats, RVs, and even motorcycles. However, other charities may not be adequately equipped to handle vehicle donations. For this reason, it is important to contact the charity ahead of time and provide more information about the vehicle, including its overall condition.

Is There a Charge to Donate My Vehicle?

If you donate a car to an organization such as Rawhide, there is absolutely no charges or fees that you will need to pay. Simply contact the charity and they will be able to arrange for free pick-up services. Even better would be if you drove down the car to the charity to help them save on transportation costs.

What Paperwork Do I Need to File?

In order to donate your car you will need to complete and file some paperwork. Every vehicle has a title with the name of the owner. Before making the donation you will need to drive to your local DMV office and transfer the title to the name of the charity. This way you won’t be held liable for any parking tickets or other infractions that the vehicle may receive.

How Much Can I Claim?

The IRS lets contributors make deductions in different ways. If the charity sells the vehicle at an auction for $4,000. for example, then that is the maximum amount that you can claim on your tax returns. You can claim the vehicle’s fair market value if the charity decides to use the vehicle in its own operations. This is important as it means that you can maximize your tax deduction. Be sure to consult with a tax advisor for more information on how to properly claim vehicle donations on your tax returns.

No comments:

Post a Comment