It’s coming to be that time again. You know the time of every year where Uncle Sam digs as deep as he can into consumers pockets! Tax time, that’s it. Well, if you have an old beat up clunker that doesn’t run in front of your house, you may want to consider a whole new tax deduction! By donating an old vehicle, you could be in for a bigger tax deduction than you expect. As a matter of fact, the minimum that you will get is $500.00 which is sure a great start!
So, how easy is donating a vehicle, well, here are a few commonly asked questions that should help you along your way:
Question: Does an automobile have to be in good running condition to be donated?
Answer: No, as a matter of fact, most cars that are donated by consumers are in a junk car condition meaning that the vehicle does not run and would not be good to sell to anyone! However, these junk cars can be scrapped for scrap metal which often equates to hundreds of dollars that will be donated to a charity from junk car.
Question: If the automobile is not in good running condition, do I have to pay to have it towed to the donation facility?
Answer: You shouldn’t have to! Because the majority of automobiles that are donated by Americans are junk automobiles that do not run, the majority of automobile donations companies have a contract with a towing corporation that makes towing your donations away easy and affordable for the donations corporation. In most cases, the corporation that accepts car donations will be the party that will pay to have the donation towed to their facilities.
Question: What are the Federal Guidelines for vehicle donation tax deductions?
Answer: The IRS’s vehicle donation tax law, allows the taxpayer to claim a charitable tax deduction as follows: If vehicle is sold for less than $500, you can claim the fair market value of your automobile donation up to $500 or the amount it is sold for if less than fair market value. If the vehicle sells for more than $500, you can claim the exact amount as an auto donation tax deduction for which the vehicle is sold.
The exact amount that your vehicle sold for will be indicated on the notification emailed to you, which also serves as your charitable tax deduction verification.
This article was written by Joshua Rodriguez and is brought to you by: Cars Helping Charities: Car For Donation | Donate A Car
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