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July 21st, 2010, 07:36 AM
Donate Your Car to Charity in 5 Easy Steps
Posted on July 20th, 2010 by Keri DeVrieze
If you’ve ever considering donating your car, truck, RV or boat to charity instead of selling it, here are 5 simple steps to make your donation simple.
1. Determine what to donate
Most people think that only cars, trucks or SUVs can be donated, however motorcycles, boats or even RVs can also be donated to charity. If you’re considering donating one of those items then you should consider what’s most beneficial for you. If you don’t think trading in your vehicle will provide you with much benefit or you simply what to make a charitable donation out of the goodness of your heart, then give thought to what you’d actually like to donate.
2. Determine the value of your vehicle
Because of a newer tax law that went into effect January 2005, the IRS has taken the guesswork out of determining the value of your vehicle. You are now able to deduct the full price that a charity receives from the sale of your donation. Fortunately, this simplifies the process for you as a donor because you no longer have to research and estimate the fair market value of it. It also eliminates the risk of getting into tax problems resulting from overstating the value.
3. Complete a donation form
Once you decide that you’d like to donate your vehicle to charity, you’ll be required to complete a donation form. Once a charity receives your information, it’s typically reviewed then they’ll contact you to discuss the full donation process.
4. Acquire the title and arrange for pick up
When donating a vehicle, you’ll be required to hand over your title otherwise they won’t be able to accept your donation. Make sure that you have a free and clear title available at the time of drop off or pick up. If the charity picks up your vehicle, you’ll always want to make sure your personal belongings have been completely removed prior to the pickup time.
5. Get your tax benefit
After donating your vehicle to a charity, you’ll receive a receipt for it. You can then use that to obtain your tax deduction. For additional information, check out the IRS website.
Posted on July 20th, 2010 by Keri DeVrieze
If you’ve ever considering donating your car, truck, RV or boat to charity instead of selling it, here are 5 simple steps to make your donation simple.
1. Determine what to donate
Most people think that only cars, trucks or SUVs can be donated, however motorcycles, boats or even RVs can also be donated to charity. If you’re considering donating one of those items then you should consider what’s most beneficial for you. If you don’t think trading in your vehicle will provide you with much benefit or you simply what to make a charitable donation out of the goodness of your heart, then give thought to what you’d actually like to donate.
2. Determine the value of your vehicle
Because of a newer tax law that went into effect January 2005, the IRS has taken the guesswork out of determining the value of your vehicle. You are now able to deduct the full price that a charity receives from the sale of your donation. Fortunately, this simplifies the process for you as a donor because you no longer have to research and estimate the fair market value of it. It also eliminates the risk of getting into tax problems resulting from overstating the value.
3. Complete a donation form
Once you decide that you’d like to donate your vehicle to charity, you’ll be required to complete a donation form. Once a charity receives your information, it’s typically reviewed then they’ll contact you to discuss the full donation process.
4. Acquire the title and arrange for pick up
When donating a vehicle, you’ll be required to hand over your title otherwise they won’t be able to accept your donation. Make sure that you have a free and clear title available at the time of drop off or pick up. If the charity picks up your vehicle, you’ll always want to make sure your personal belongings have been completely removed prior to the pickup time.
5. Get your tax benefit
After donating your vehicle to a charity, you’ll receive a receipt for it. You can then use that to obtain your tax deduction. For additional information, check out the IRS website.