Donating your car is a great way to get rid of your car when you do not have the time to sell it yourself, when you do not think you can get what you want for it, or when your car is just not worth bringing anywhere. Instead of making a couple of hundred dollars on your car or less you can easily and painlessly donate your car and reap the many benefits of doing so!
Why People Donate Cars?
Many people donate their cars because of the reasons stated above: they don't have time to sell it themselves, or they know they can't get much for the car. They also will donate their car to help out a charity and even get a tax benefit from donating their car.
How To Donate Your Car?
There are some very simple steps you can take in order to donate your car. Here are your steps to donating your car:
Step 1: Locate a charity that will accept your car without charging you a lot for removal. Some charities will take your car as a donation and come pick it up for you free of charge. However, it depends on if you have a preference as to what charity you would like your car to go to. The organization or charity must be a 501(c)(3) non profit organization. This is a specific certification non profit organizations receive from the government. If they do not have this, refuse and move on to the next one. If they are not certified you will not be able to get the tax benefits you deserve to get.
Step 2: Once you have chosen a charity to donate your car to, go ahead and donate it. Before you do though, you will have to determine the market value of your car using the Kelley Blue Book. The IRS will expect you to be able to provide them with your car's estimated value when you do your taxes. There is also a publication that the IRS has that will help you determine the value of your car and give you more information on this. Just visit their website to get publication 526: charitable donations. While you are there pick up publication 561: determining the value of donated property. If your car is worth more than $5,000 you must have a professional certify the value of your car.
Step 3: When you donate your car to charity make sure you get a receipt from them. The receipt must have this information on it - the charity's name and tax ID number, the date, your name, and the make and model of your donated car.
Step 4: Make sure you let your insurance company as well as the Department of Motor Vehicles (DMV) know that you have donated your car. Follow the law on what to do with your donated car's license plates and the car's title. Now you can complete the IRS form 8283 and keep it with your receipt and store it away safely for tax time.
Napoleon Hill
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