The following post is a follow up one we did last week about Automotive Part Recyclers and how you should try to buy your car parts used and also sell your junk cars for cash. We had a few readers tell us that there are actual places that you can donate a car to charity, so you are kind of double dipping in goodness. On one hand you are helping the Environment and on the other hand you are helping a charity in need.
Most places to accept the donation of your old vehicles on behalf of Charity Organization, and you can get a tax deductible receipt in the process. So why wait, making the choice to dispose of your old car in an environmentally safe method that benefits a charity of your choice is one of the best decisions you may make and even end up saving some money of your own with your tax return.
However, before you start to jump up and down with joy about all the good your doing, there are some things that you should know before you donate a car to charity.
First be certain that the charity you have selected is a qualified registered charitable organization that can provide tax deductible receipts. Often you can check out your chosen organization with the IRS website [www.irs.gov/eo] You also must ensure that you qualify for a tax deduction by donating an old vehicle. The deduction needs to be itemized on your tax return forms and it can not exceed 50% of your gross income. And remember that the maximum amount allowed for the tax deduction for your old car donation is the fair market value of your donated old car. So if you donate an old Ford Taurus Station Wagon, do not expect the same value as if you donated a Lexus
Often if the value of the deduction is more than $250 then you will need a written acknowledgement from your charity and if it exceeds $5000 then you will need a written appraisal from a qualified automotive appraisal. Regardless of the value of the donation, there are still some basic record keeping and paper work requirements needed such as the name & address of the charity, the date of the donation, the place where the donated car was recycled, a valid description of the car plus some other additional various filings according to the value of the donated car:
Donating your junk automobiles may not be enough to get your name in the national green energy news and it may seem like a bit of extra work with the IRS forms and paper work but just remember that you will be doing a double cause as you will be helping a local charity of your choice and you will also be helping to Save the Environment at the same time!
