You have an old car parked in the garage. It still works and is somewhat in good condition, but you’re already using a new one. Now you’re thinking about how to dispose of it. Selling seems the first choice, but there is another option you can consider – donate the vehicle.
Getting Significant Tax Deduction
It may seem absurd at first. Why would you just give away something you’ve spent hundreds of dollars on? Donating a car has its advantages, though. For one, you can get tax deductions off of it, and an opportunity to legally deduct significant amounts on your tax doesn’t come often. If a foundation uses the vehicle for charitable purposes, you can subtract the fair market value of the car to your dues.
The Internal Revenue Service (IRS) has instituted some changes that strictly regulates how much you can deduct on your taxes for donating a car. Before this change, donors could submit the full value or blue book of the vehicle. As this is lopsided, the IRS recently made changes so that now you can only claim the amount for which the car was sold.
Clearing Off Unnecessary Things
Aside from writing off a few numbers on your tax return, donating a car has other advantages you can benefit from. For one, this helps you get rid of something you don’t want or can’t use anymore. Instead of letting the old car sit and occupy space in the garage, it is better if you just take it somewhere else.
Some might suggest repairing the vehicle. It’s plausible, but not logical. Used cars may have little-to-no trade-in value, which makes it irrational to spend on repairs. You can sell it for a fraction of the original amount; however, keep in mind that you have to pay income tax for selling a car.
Helping Those Who are in Need
Another benefit of car donation, and probably the most important of all, is that you get to help people in need. There is no better reward in getting rid of your old car than knowing that your donation is doing good. Donating a car can give you a sense of personal satisfaction and pride in making a difference.
Car donations have a lot of upsides not just for the donor, but for those who are in need, as well. Here at MADD, we gladly accept car donations to effectively perform charitable works. Our process is as simple as filling out the basic form or calling. We’ll tow your vehicle at no cost and then send you a donation receipt. Contact us now and start making a difference and be an instrument in rebuilding lives.