Donating Old Cars

One of the most commonly asked questions is whether it is possible to donate old cars and get tax deduction. The answer is yes it is possible to donate old car as long as they are running.

In order to determine how much a donor will gain out of donating a used car, it is important to have documents stating the original value of the car. If for example the car was initially worth up to $500, then it is up to the donor to determine the fair market value, without making a mistake of exaggerating the figures because they might land you into trouble. This is to determine the amount the car will be sold at by the company given that job by the charity organization It is good to remember that there is no time that tax deductions can be more than the adjusted total gross income.

An example of a good donation center is the Salvation Army. Since the 1880, the Salvation Army church has been receiving different types of donations and because of that, if a person decides to donate old cars to them, then the Salvation Army will definitely give you a good value for your money.

Another frequently asked question is what happens to the cars after they have been donated.

The usual procedure that the car goes through inspections and reconditioning, and then after the mechanics are through with them, the donated old cars are then subjected to a public charity auction.

Before the auction the public is notified through advertisements and other form of notifications in order to bring more potential customers on board. The reason behind holding public charity auctions is because the customers involved pay more for the cars than a car dealer would. The advantage is that the higher the car is bought on the auction, the more the charity gains in terms of funds. Some charities tend to keep some of the donated old cars for their own use such as moving of goods and kids transportation.

It would be better if the donor follows and makes sure that the charity the car has been donated to is eligible in receiving non-cash and cash donations.

So instead of just dumping an old car that is in a good condition on the yard, it would be really good if it is donated for a good cause.