Car donation means giving your vehicle to a charitable organization. A few years ago, donating cars was a famous tax gambit. People received thousands of dollars in tax benefits after contributing to charity.
There are still many benefits to donating a vehicle. Have a car you want to give to charity? Here are tips to follow.
Know the charity you’re donating to:
Before you donate your car, do your research on the charity you’re interested in. Ask if they even accept car donations in the first place. If they do, how do they intend to use your donated vehicle? Keep in mind there are thousands of charities that accept car donations but only a few of them directly influence your community.
Get A Receipt:
We know that most people don’t like to broadcast the good they put out in the world but when it comes to car donations, make an exception. When you’re donating a car to a charitable organization, always ask for a receipt.
The reason why getting a receipt is important is because it saves you hours of hassle at the IRS office. To receive the tax benefits that you’re entitled to, you will need some sort of evidence to present to the IRS officer. To that effect, a receipt from the charity you’re donating to will suffice.
Consult Your Tax Adviser:
It goes without saying that before you receive tax benefits, you should always consult your tax adviser. If you don’t have one, visit the website of the IRS for more information. If your car is worth more than 500 USD, then you must fill out Section A of the IRS Form 8283.
Donating cars can often be very complicated but to make matters easier for people we’ve set up our own car donation program. Our Cars for Christ program makes car donations simple.
Simply get in touch with us by calling us at (860) 648-1600 and schedule a car pickup. We promise to pick up your car within 24 hours.
Once you’ve handed the keys over, your car will be sold and you can receive at least 500 USD in tax credits. Furthermore, if your car sells for more than 500 USD, your receipt will be for the sale price!
So, what are you waiting for? Donate a car today and help us make a difference!