When it comes to getting rid of your old jalopy, do you know your choices? Many people trade in their cars for peanuts or attempt to sell their vehicles themselves through windshield signs, lemon lots, or classified advertisements. What you may not realize is that your can get a great deal more out of your hunk of junk by donating your car rather than selling it.
Should You Give Your Car Away?
You can give your car to charity and deduct the gross proceeds from the sale if the proceeds are for more than $500.
If the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer’s claimed value is limited to the gross proceeds from the sale.
The charitable organization must notify the donor within 30 days of the sale of the amount of the gross proceeds. However, if the charity adds impro…
Car Donation Facts For You
Donating money and good is a great way to help out worthy causes while still helping yourself out on your taxes. Car donation is no different. Even though some of the car donation tax laws changed a few years back, this is still a great way to help yourself and others. So if you have an old car and just arent quite sure what to do with it, then consider a charitable donation of your vehicle.
As of 2005, the laws for car donation changed. For motor vehicles, boats, and air…
Car Donation Tax Deduction
Next to wanting to contribute to charitable causes, perhaps your biggest motivation to donate your car is the substantial tax break it can give you. Dont be misled by information about your return, because the tax breaks you can get from a car donation may not be as big as you think.