Tag Archives: donate car

What Will My Tax Deduction Be if I Donate My Car?

When a person calls a charity to ask about car donation, they usually ask what their tax deduction will be if they do donate car. The answer is a little complicated. When you donate car to charity the amount you can claim on your taxes depends on two things; the fair market value of your car and what the charity does with the car.

The fair market value of your car is the amount you could sell it for on the day you is not more than the amount you paid for the car; in its present condition; without any repairs.  To determine the fair market value or FMV of your car you can use any of the popular pricing guides to help, including the Kelly Blue Book, NADA Guide or Edmunds Guide. If you are using the Kelly Blue Book or Edmunds Guide, you should start with the private party values and then adjust those values according to the mileage and condition of your car. Do not use the values listed under Retail or Clean Retail to determine the FMV of your car. These are the values for the car if it were purchased from a car dealer and in excellent condition. It is important that you are reasonable in determining which values to use based on the actual condition of your car.  The last thing you want is for the IRS to disallow your tax deduction during an audit because you inflated the FMV of your car.

Here are some general guidelines you can use to help determine the correct selection for the condition of your car;

Excellent Condition or Clean Retail means that the car has never had any body work and has no rust. This is basically “show room” condition. If your car had some body damage at one time, even if that damage was completely repaired, you should not use this category.

Good Condition or Clean Trade-in means the car has some very minor scratches, little or no rust, no major mechanical problems, good tires, etc. If your car has a dent, is rusted or has a significant problem like the transmission slips, the engine knocks, etc. you should not use this category.

Fair Condition or Average Trade-in means that the car is in reasonable running condition has some repairable mechanical problems, damage or rust. Most car donations fall into this category.

Poor Condition or Rough Trade-in means that the car has severe mechanical problems, damage or rust. If your car has a salvage title or flood title you must use this category.

The second thing that determines the amount you can claim for your tax deduction when you donate car is what the charity does with your car donation.  If the charity sells your car as-is, without making any major improvements, your tax deduction depends on the amount the car is sold for.  If the sale price is more than $500, the sale price is the amount you can deduct. In this case, the charity is required to provide you with IRS Form 1098-c. If the sale price is less than $500, you can claim the FMV up to $500.

If the charity sells the car after making major improvements you can claim the FMV as long as it is not more than the amount you paid for the car. In this case the charity has to provide you with a statement that they plan to make those improvements, what those improvements are and that the car will not be sold until after those improvements are made.

If the charity plans on keeping your car and using it for their purposes, you can claim the FMV as long as is not more than the amount you paid for the car. In this case, they have to provide you with a statement of their intent to use the car, how long they intent to use it and certifying that the car will not be sold until the completion of that use.

If the charity intents to donate car to or a needy person or sell it to them for much less that its FMV, you can claim the FMV as long as it is not more than the amount you paid for the car. In this case the charity must provide you with a statement of their intentions and that the gift or sale directly furthers its mission.

Got a Tax Problem? Here is One Solution

If you have an extra car and are looking for a way to reduce your income taxes, here is one recommendation.  You will get a tax deduction of $500 or more when you donate car to charity. Sadly, many charities will only let you donate car that is running, is in decent shape or is less than 10 years old. Cars4Charities does not care what condition your car is in; they will gratefully accept it no matter what shape it is in, how old it is or if it does not run. They only require that you have a title free of liens for your vehicle or some other proof that you are the owner, that your car is not striped of any parts, that the tires on your car are not flat, and that it is parked in a place where a tow truck can easily get to it. Cars4Charities will pick up your car donation fast and free, too!

In return for your charitable contribution, you will receive a tax deduction of $500 or what Cars4Charities is able to sell your car donation for, whichever amount is greater. They will also provide you with all the forms you will need to file with your taxes so you can claim your valuable tax deduction.

Cars4Charities also lets you donate car at your leisure online through their website, http://www.cars4charities.org/. This option greatly lowers their expenses and is beneficial for the environment since it reduces the use of paper and other consumables. You can donate your car to any of hundreds of very deserving charities at Cars4Charities, including many local food banks, homeless shelters, hospices, etc.

When you are ready to donate car, please contact Cars4Charities at http://www.cars4charities.org/ or call 1-866-448-3487. They will gladly explain the entire car donation process to you and provide you with prompt and professional service.

The Cost to Fix My Car is Just Too Damn High!

We have all probably been there; you bring your car in to the shop for what you think is a minor repair, then the mechanic comes to you and says the car needs expensive work.  Your reaction is to scream, “The cost is just too damn high”? Now what do you do? Well, you have a few choices.

You can pay the piper and get your car fixed. The question, of course is;”Is it worth it?” If the answer is; no or probably not, then there are some other things you can do with your car. You can trade it in for a new or better used car. Unfortunately, you may not get a particularly good trade in amount for the car if it needs significant repairs. You will have the same problem if you try to sell your car privately by advertising it the paper or online. It is extremely difficult to get a decent price for a car that needs repair. Even if your car is drivable, you have a legal obligation to tell the prospective buyer of any problems it has. If your car is really in bad condition, you can probably get a few dollars for it from a local junk yard.

If you itemize on your federal income tax return, you will get at least a $500 tax deduction if you donate your car to a charity. Sadly, many charities will not let you donate car if it does not run, is in poor shape or is over 10 years old. Fortunately, one charity; Cars4Charities does not care how old your car is, if it runs or what condition your car is in; they will proudly accept it as it is. Their simple requirements are that you have a title that is free of liens for your car, that the car is not stripped of any of its parts, that the tires are inflated and that the car is parked in a place where it can easily be towed.

Cars4Charities is recognized by the IRS as a 501 (c) (3) charity. Therefore, you be assured that they will handle your car donation properly and professionally. In return for your charitable contribution, you will get you a tax deduction of $500 or what Cars4Charities sells your car donation for, whatever amount is greater. They will also provide you with the forms you will need to submit with you taxes so that you can claim your valuable tax deduction.

Cars4Charities also allows you to donate car completely online at any time through their website, http://www.cars4charities.org/. This option greatly lowers their expenses enabling them to give more money to the charity you choose from their list of participating charities. It is also far better for our environment because it reduces the use of paper and other consumables.  If your car is in poor condition, Cars4Charities will make sure it is recycled properly.

For complete details on how to donate car, please contact Cars4Charities through their website http://www.cars4charities.org/ or by calling them toll free at 1-866-448-3487.

Top Ten Reasons to Donate Car to Charity

There are a lot of ways to get rid of a used car. You can trade it in at a car lot, you can sell it, you can junk it, or you can donate car to charity. There are many good reasons to choose car donation. Here are the top ten:

10.   You will not have to trade your car in for another one or argue with the car dealer over the trade-in amount.

9.      You will not have to pay to advertise your car for sale

8.       You will not have to sit at home and wait for interested buyers to call or come over to look at it

7.       You will not have to repair your car to make it easier to sell it. Cars4Charities will accept your car donation whether it runs or not.

 6.     You will not have to call the junk yard to come to pick it up.

5.      You will not have to pay for car insurance or registration fees anymore; in fact you may a rebate back on them.

4.   You will get free pickup.

3.   You can donate your car online any time at http://www.cars4charities.org/.

2.      You will get a tax deduction of at least $500.

1.      You will help support a very deserving charity.

Cars4Charities has an extremely impressive list of charities you can donate car to. That list includes International charities like Food for the Poor, Freedom From Hunger, the Fund For Peace, Helen Keller International, Partners in Health, the Smile Train, TropicalClinics, etc., National charities like the American Autoimmune Related Diseases Association, the American Foundation for the Blind, the American Macular Degeneration Foundation, the American Parkinson Disease Association, the Asthma and Allergy Foundation of America, Autism Speaks, the Brain Trauma Foundation, the Breast Cancer Research Foundation, the Cancer Research Institute, the Diabetes Research Institute Foundation, the Juvenile Bipolar Research Foundation, the Lam Foundation, the National Association for Down Syndrome, the National Coalition for the Homeless, the National Council on Alcoholism and Drug Dependence, the Prevent Cancer Foundation, Teach for America, as well as many State and hundreds of local charities like food banks, homeless shelters, and various other fine charities.

You will find complete details on how to donate car by going to http://www.cars4charities.org/ or by calling Cars4Charities at 1-866-448-3487 (GIVE-4-US).

Vote Yourself a Tax Deduction

Often, Election Day means going into the booth and vote for a candidate you feel may be the lesser of two evils.  If you have a car you do not need, you can vote yourself a tax deduction of at least $500 on your itemized federal tax return if you donate car to charity. You do not even have to pull a lever or mark a spot. It is already there for you.

If your car is in good condition, most charities will gladly take it. What they do with it is another story. Some charities will use the car or give it to a needy person. The majority of charities sell all donated cars. Many of those send all car donations to auction. If the price of the car does not exceed the auction fees, the charity will have to pay the difference. In that case, the charity will lose money on the car donation

Unfortunately, there are many charities that will only accept your car for donation if it runs, is in decent condition and is less than ten years old. Fortunately, one car donation charity will gratefully take your car no matter how old it is or whether it runs or not. That charity is Cars4Charities. They do not discriminate. They only ask that you have a title for your car or have some proof that you are the owner, have not taken parts out of it, and have it in a place where a tow truck can easily get to it.

When you donate your car to Cars4Charities, you will get a tax deduction on your itemized federal tax return of the greater of $500 or the amount they are able to sell your car donation for. Cars4Charities will also provide you with the forms you will need to file with your taxes in order to claim your valuable tax deduction.

Cars4Charities has a most impressive mix of charities you can donate car to. If your interest is in helping charities that provide International aid, you can donate your car to Aid for Haiti, Doctors Without Borders, Food for the Poor, Freedom From Hunger, Helen Keller International, Partners in Health, the Smile Train, TropicalClinics, etc. If you prefer to help fight disease or aliments, you can donate car to the American Autoimmune Related Diseases Association, the American Foundation for the Blind, the American Macular Degeneration Foundation, the American Parkinson Disease Association, the Arc of Massachusetts, the Asthma and Allergy Foundation of America, Autism Speaks, the Brain Trauma Foundation, the Breast Cancer Research Foundation, the Cancer Research Institute, the Diabetes Research Institute Foundation, the Juvenile Bipolar Research Foundation, the Lam Foundation, the Kelly Heinz Grunder Brain Tumor Foundation, the National Association for Down Syndrome,  the National Council on Alcoholism and Drug Dependence, the Prevent Cancer Foundation, etc. If you favor helping locally, Cars4Charities has hundreds of local homeless shelters, food banks, hospices, etc. that you can donate car to.

For complete details on how to donate car, please call Cars4Charities at 866-448-3487 or go to their website, http://www.cars4charities.org/ .

What do Charities do With Car Donations?

Many people who donate car to charity hope that the charity will give the car donation to a deserving person. Some charities do give away car donations, but they are in the minority. Those charities only give away cars that are in good condition and run. The reason is because the charity, like a used car dealer, by law can only give or sell a car to a needy person that passes inspection and meet the emission standards.

Most cars that are donated need some type of repair. Many car donations have major body damage or some mechanical problems and are donated because the donor does not want to fix it or cannot afford to fix it. Again, the charity is required to repair the car before they are allowed to donate car or sell it to a deserving person. Often, the cost these repairs is more that the value of the car. That is one of the major reason why most charities sell car donations directly to used car dealers or to parts yards either directly or through auctions.

One of the other reasons, most charities do not donate car is the fear of being sued by the recipient.  If the charity donate car to someone that later breaks down, the charity will may be liable for the repairs. In the worst case scenario, if the recipient gets into an accident with the car which results in injuries, the charity may have some major liability problems.

Another obstacle involved when a charity donate car to someone is the expense of car insurance, title and registration fees, and license plates. The recipient has to be able to afford these items and provide them before they take possession of the car. The charity cannot donate car unless the beneficiary has a valid driver’s license, insurance, license plates, etc.

When you consider the costs and liability issues involved it is not hard to understand why most charities choose not to donate car to needy people. It is not that charities do not want to donate car to people in need; it is that there are too many obstacles involved.

Don’t Labor Over Your Car, Put it Work for You

If you are tired of constantly fixing your car, maybe this is a good time for you to put your car to work for you. Your car will get you a tax deduction of at least $500 when you donate car to charity. Cars4Charities will proudly handle everything for you, promptly and professionally. They will have your car picked up fast and free. Cars4Charities will then send the proceeds from the sale of your car to the charity you select from their very impressive list. That list includes International charities such as Food for the Poor, Freedom From Hunger, the Fund for Peace, Helen Keller International, Partners in Health, the Smile Train, TropicalClinics, etc., National charities such as the American Autoimmune Related Diseases Association Foundation, the American Foundation for the Blind, the American Macular Degeneration Foundation, the Asthma and Allergy Foundation of America, Autism Speaks, the Brain Trauma Foundation, the Breast Cancer Research Foundation, the Cancer Research Institute, Canine Assistants, the Diabetes Research Institute Foundation, the Juvenile Bipolar Research Foundation, the Lam Foundation, the National Association for Down Syndrome, the National Coalition for the Homeless, the National Council on Alcoholism and Drug Dependence, the Prevent Cancer Foundation, the SASS Foundation for Medical Research, Teach for America, and many State and local charities such as food banks, homeless shelters, hospices, etc.

At Cars4Charities you can donate your car anytime online through their website http://www.cars4charities.org/. This option lowers their expenses and is better for the environment because it reduces the use of paper and other consumables.  If your car is in poor condition, Cars4Charities will make sure it is properly recycled.

Complete details on how to donate car are available at http://www.cars4charities.org/ or by calling toll free 1-866-448-3487 (GIVE-4-US).

When You Go Green, You Will Get Some Green

Your extra car will help your finances, your community and our environment when you donate car to charity. Besides helping to support a very good cause when you donate your car to charity, you will receive a tax deduction of $500 or the amount the charity sells your car donation for, whichever is more.

Cars4Charities will proudly handle your car donation for you and have your car donation picked up fast and free. They will then sell your car donation for the highest price possible, send you all the forms you will need to file with your itemized federal tax return in order to claim your valuable tax deduction, and send the proceeds to the charity you select from their extremely impressive list.

That list of deserving charities includes International ones such as Helen Keller International, Partners in Health, the Smile Train, Freedom From Hunger, Food for the Poor, the Fund for Peace, TropicalClinics, Aid for Haiti, Doctors Without Borders, etc., National charities such as the American Foundation for the Blind, the Breast Cancer Research Foundation, the Prevent Cancer Foundation, Autism Speaks, the Diabetes Research Institute Foundation, the National Association for Down Syndrome, the Brain Trauma Foundation, the Asthma and Allergy Foundation of America, Teach for America, the Cancer Research Institute, the National Coalition for the Homeless, etc., as well as many State and hundreds of local charities such as food banks, homeless shelters, hospices etc.

At Cars4Charities you can donate car online at your leisure through their website http://www.cars4charities.org/. This option significantly lowers their expenses allowing them to send more of the proceeds from the sale of your car donation to charity. It is also much better for our environment because it reduces the use of paper and other consumables. 

Unlike many car donation charities, Cars4Charities allows you to donate car that no longer runs, is more than ten years old or is in very poor shape.  If your car is in very bad condition, Cars4Charities will see to it that it is properly recycled.

Complete details on how to donate your car are available at the Cars4Charities website, http://www.cars4charities.org/ or by calling them toll free at 1-866-448-3487 (GIVE-4-US). They will proudly explain the entire car donation procedure to you and provide you with prompt and professional service.

Time to Get Ready for Winter

In most parts of the country, winter does not wait for December to arrive. Now is the time to get ready for the cold, snow and ice. You can start by winterizing your house. First check your storm windows and exterior doors for cracks, openings, etc. Seal any cracks and openings and caulk windows where needed.  Place weather-stripping around doors to keep the cold air out. Add extra insulation where needed. If you have an attic, adding insulation will not only lower your energy bill, it will help protect your roof from ice dams. There is currently a tax credit available on many of these energy saving items.

Have your furnace cleaned and change the furnace filters. It is recommended that you change your furnace filters monthly during the winter. Also make sure there no flammable materials near your furnace.  Installing a programmable thermostat will lower your heating costs. If you have a fireplace or wood stove, have it and the chimney inspected to make sure they are safe.

Also, clean your gutters and downspouts, and inspect your roof for any missing or worn shingles. Insulate any exposed pipes to prevent water in them from freezing and drain the garden hose. Service or tune-up your snow blower, make sure you have a good snow shovel, and a good supply of driveway salt. You should stock up on candles, flash lights, extra food, water, etc. in case the power goes out or you get snowed in for a day or two.

Next, winterize your car. Check the tires for wear or put snow tires on your car. Also check the tire pressure. Then, check the battery, belts, hoses, lights, heater, defroster, brakes, antifreeze, etc.  You should change the oil, replace the wiper blades and fill the washer fluid reservoir. You should also make sure you have a blanket, a first aid kit, tool kit, flares, cat litter, jumper cables, a snow brush, an ice scraper, a shovel, water and some food in your car. If you are not confident that your car will not get through the winter, now is a good time to consider replacing it with a more reliable one.

If you do decide to replace your car, there are many ways you can dispose of your present car.  If you donate car to charity, you will get a tax deduction of at least $500 and your car donation will help a very worthy cause.

Some Very Good Car Donation Advice

There are a lot of good reasons to donate your car to charity. You get rid of a car you do not need, you get a tax deduction of $500 or more and you help a needy charity. It should be very easy and it is easy if you know how to do it properly.

Before you just hand over the title to your car to a stranger, you need to do some research first. Find out what the charity will do with your car donation. Most donated cars need a lot of expensive repairs. For that reason most charities sell car donations. If the charity you choose uses a car donation center, ask them how much of the actual sale price of your donated car the charity will receive.  The term “net sale price” means the actual sale price of your car minus the auction fees, selling fees, or other fees charged by the car donation center. In some cases, these fees will be more than the selling price of your car. If that happens, the charity you donate your car to will have to pay the car donation center the difference and will lose money on your car donation. You will not know if you do not ask them!

You should also make a copy of your cars title and make a record of the name and phone of the towing service assigned to pick up your car. You should also mail the title directly to the charity. It is safer for you to have the title in the hands of the charity rather than the hands of the towing service. If you have to give it to the towing service, make sure your only give it to them after you receive your receipt. Never, ever just leave the title in the car! If you do that, you may never get a receipt and in that case you will not be able to provide proof of your car donation.

You should remove your license plates and any stickers on your windshield of your car if you live in one of the many states that require you to do so. In those states, you will not be able to cancel your car insurance until you have returned the license plates to the Department of Motor Vehicles or transferred them to another car. You may also receive parking tickets from the next owner if you forget to remove the stickers from your car’s windshield.

You also need to keep all the correspondence between you and the charity. If you do not keep that correspondence, you will not have any record of your car donation and the IRS may not allow you to claim a tax deduction for your car donation

The donate car process will be a lot easier if you educate yourself a little first. Avoiding the pitfalls of the car donation process are more that worth the time you will spend on that education.