About ¾ th of the population does car donation for tax deductions. Car donation not only helps you but also helps towards a noble cause. You can always think of a car donation when you want to get rid of your old car. They are several questions people have while making a car donation. A few of them are discussed here.
Condition of the car
- Apart from getting tax deductions, another benefit of car donation is that you can donate your car in any condition. The charitable organisation will never ask you to repair or repaint it. They will accept a car in any condition. Even if you car does not start, they will take it. They are looking for your donation and the money they can raise with it.
- You will need to have the title of your car. But in case you have lost it, there are certain charity houses that have resources to find and replace the title.
Kind of cars to be donated
· Generally all the charity houses take cars of any model. Still there are few charity houses that may have some limitations here. You can also call them up and enquire about this.
· Apart from cars, one can also donate motorcycles, bikes, SUVs, trucks and even boats.
- There is little paperwork required for a car donation.
You will need the original documents of the car. You will need the document of the transfer of the title to claim the tax deduction. You will also have to estimate the value for your car. You will need this document too.
- Apart from the car related paper work, you will have to fill up some forms needed for a car donation.
How is the car towed to the charity?
- The responsibility of the car to be towed is of the charitable organisation. Neither do they charge the donor any money for this purpose. This is done in 1-2 days.
Benefits of car donation
- About 3/4 th of the population is getting tax relief by car donation. This is a very amazing way used by the government which helps everyone. The people in need and the people willing to help.
- The best part of a car donation is tax deduction. After the car donation, if it sold for less than 5000$ by the charity house, then the donor’s estimated value will be the amount for tax deduction. Else if it sold for more than 5000$, then that will be the amount for tax deduction.
- Your car donation also has to come on the list for you to get the tax deduction. Always remember that the charity house you are donating your car is a registered one. If it not registered, then you do get any tax reduction. The charity house has to be recognised by the government.
- With the invent of internet as come comfort. You can also donate your car by filling out application form over the internet. This eases the process. Car donation can also be done over the phone. 24x7 helplines are also available in some places.
Donation of any kind is always a great gesture for helping people in need. So whenever you get chance, do it.