Making a donation is the best way to help those less fortunate whether you are donating your money, time or even both. Another way to contribute to a good cause is by donating things you may not longer use. If you have a car that has been gathering dust, why not donate it instead? You clear up space on your driveway and even get tax benefits as a result.
The following looks at frequently asked questions about vehicle donations.
What Vehicles Can Be Donated?
Most charities are more than happy to accept vehicles of all types such as cars, trucks, trailers, boats, and even motorcycles. However, some may only be willing to accept those that are still in working condition. Confirm ahead of time before making your donation.
What Paperwork Do I Need?
You cannot simply drop off your car at the charity and walk away. You will need to go to your local DMV to transfer the title to the name of the charity. This is absolutely necessary; otherwise you could be held liable for any infractions that the vehicle may receive while in operation.
What Are the Tax Benefits?
If you donate a vehicle to a charity, you can claim a tax deduction on your tax return. Deductions typically depends on what the charity does with the vehicle. If the charity sells the vehicle, then you can claim a deduction based on the sale price. In other cases, you can claim the fair market value of the car. Speak with an accountant if you are unclear about how to claim a tax deduction for donating your vehicle.
What Happens to the Vehicle?
It all depends on the charity. Some charities may choose to use the vehicle for themselves, such as to transport goods around. Others may instead choose to auction off the vehicle and use the proceeds for other matters. The charity you decide to donate to should be more than happy to tell you what your contribution does.
Donating a car is incredibly beneficial, both to the community and the charity. The entire process is also relatively straightforward.
No comments:
Post a Comment