Car Donation Tax Deduction – The Lucrative Side of Car Donation
The word ‘donation’ is used mostly in the case of a gift or contribution. It often means the donar does not gain any benefit. But when you donate a car to a charity, you get monetary benefit in the form of car donation tax
deduction. At the same time the charity benefits from your donation. It is a ‘win-win’ situation. The car donation tax deduction is available for the entire amount realized by selling your car.
Where to donate?
A tax deduction is accepted by many charitable organizations. But if you want to get the car donation tax deduction, you have to search out the charity which is allowed by IRS, to accept such donations. In that case only, it can issue the certificate that will entitle you to the tax deduction
. If you are not able to locate such a charity or you are too busy to search for one, you can always involve an agency to do it.
If you are entrusting the business of donation to an agency, all you have to do is to visit their web site. They will have online car donation forms in their web site. Fill in the form and submit it online. Within 24 hours the agency will contact you to make arrangements to pick up your car.
They will take up the complete responsibility of the whole business there onward. They will transfer your car to the charity and complete all the paper works involved. They will make arrangements to sell the car for the maximum possible price. If you do not get a certificate from the concerned authority for the entire amount, you are eligible for a car donation tax deduction only up to $500.
The charity will use the money they get from selling your car in community development projects. The poor people will be helped
to get treatments for various diseases. Malnutrition is a very serious problem in the low income community. The charities usually supply nutritious food supplements in these areas. Immunization of infants is another community welfare program taken up by these charities. The homeless people will be helped to build houses.
In short, your car donation will go into a number of community development programs.
Car donation usually proves to be beneficial to the owner in more than one way. He will be ridding himself of a very useless and irksome automobile, which otherwise would have occupied a lot of space in his yard or garage. He will have a monetary benefit in the form of the car donation tax deduction. Above all, he will get the greatest satisfaction of taking part in the noble mission of community welfare.