As the economy declines, an increasing number of people are looking for different ways to support their favorite charities. One of the most commonly asked questions people in Madison ask about how to donate a car is what preparation work needs to be done. One of the first things you'll need to do is prepare the vehicle for donation.
Find Your Charity in Madison
One of the first things you want to do before you sign away your car is to compile a list of charities that take cars for donation. This is even more important if you plan on taking advantage of the IRS tax credit allowed for vehicle donations. In order to get this benefit, you must choose a charity that has already been approved by the IRS. You can identify them through their 501 (c)(3) status or their religious affiliation. If you're not sure, you can contact the IRS directly and ask them to send you information on how to donate a car to charity and they will provide you with detailed information on what you need to know.
Get Your Paperwork in Order
The next thing you need to know about how to donate my car is the paperwork. You will need to prepare your ownership documents ahead of time, clear up any liens on the vehicle, sign and print your name on the title as the seller, and give the signed title and lien release to the charity or the tow driver sent to pick it up. You will also need to cancel insurance on the vehicle and get the proper IRS forms completed so that you can use them when you file your taxes at the end of the year.
There are many things to consider when you're asking in Madison how to donate my car. Getting the right information and applying it correctly can help you to make a smooth transition when it comes to donating a car to charity. The good news is that once you know exactly what you're doing, there will be no reason to ask again how to donate my car Madison unless there are applicable changes to the tax laws.