Donate A CarOver 30,000 cars are donated each month, as a sign of a good gesture with an added tax advantage. Sometimes, you just want the hunk-o-junk off your lawn...
If you’re interested in donating your car, first check out the charity where you are planning the donation to ensure they are a legitimate non-profit group. Obtain the value of your car – the reasonable value of your car – and don’t forget to document everything along the way – we are talking about the government here! (We should also mention that if you decide to donate a car, make sure you set aside Sundays to take care of paperwork – you will need to document and itemize everything – every single household deduction for the year – in case of an audit.) Most charities keep the car if they need it, or provide someone in need with transportation, but some turn around and sell at auction. If this happens, your maximum tax claim can only be what the car was sold for at auction. There’s still more to know...if you’re serious, grab IRS publication 4303 – and someone out there thanks you.
Search by charity to find out tax exemption status: http://www.irs.ustreas.gov
- Maximize Your Legal Tax Deduction
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