More and more charitable organizations are accepting all sorts of in-kind donations in recent years. An in-kind donation simply means that you donate goods or services instead of cash. An in-kind donation can be a really good way for you to help your community or score a nice tax deduction for yourself, even if you don't have a lot of cash to spend. One of the most popular in-kind gifts is a car donation. Donating your used vehicle to a worthy organization can be really attractive because choosing between accepting a very low offer for your vehicle as a trade-in and going through the hassle of selling it privately is definitely a depressing proposition. If you are considering a car donation, there are a few things you should keep in mind when establishing the fair market value of your vehicle.
Determining the Market Value of Your Charity Car Madison
While there are several factors that will determine the amount of tax deduction for which you might be eligible on your Federal Income Tax Return, it is important to determine the fair market value of your vehicle before considering giving it to any car donation charities Madison. Here are a few:
- What is the Kelley Blue Book valuation of your vehicle? The Kelley Blue Book value is generally considered a very good indicator of how much your car or truck is worth. These values are used by banks when determining whether or not to approve car loans.
- The options that were installed on your car when it was new will help to determine it's fair market value as a used vehicle. Cars and trucks with luxury option packages will obviously be valued a bit higher than economy models.
- Always document the condition of your vehicle when establishing its value, whether you are selling it or giving it as a donation. Take photos to show the condition inside and out; and, keep copies of any documents from mechanic shops for regular maintenance and any repairs.