Welcome To Places To Make Car Donations

Thanks for dropping in at Places To Make Car Donations. Do you have an old clunker that you want to get rid of or an extra car you don't know what to do with? Why not donate it? Donating your car is easy. All you have to do is contact the organization you want to donate your car to and they will make the arrangements to pick up the car and have it towed away at no cost to you. They will also handle the title transfer and give you a tax receipt when the vehicle is sold. By donating that old clunker or a newer better conditioned automobile you are doing five things.

1. You are saving yourself from the inconvenience of hassling over the trade in value of your car with a car dealership.

2. You also save yourself from the hassle of dealing with a parade of people looking to buy your car and having to negotiate with them.

3. You are giving to worthy causes and charities. You can even choose the charity or cause you want to benefit from your donation.

4. Your donation could help a family have a car that otherwise could not afford one.

5. And best of all your donation is Tax Deductible.

As you can see there are advantages to donating your car as opposed to selling it yourself, giving it away or junking it. By donating your car you help yourself and others. This site will give you information on where you can make your car donations and what is required from each organization.

Important Tax Deduction Information

In 2005 new laws came in affect that changed the tax deduction rules for used car donations. Before 2005 car donors could claim the blue book value of their donation. However, now donors can only get the fair market value of their vehicle, which is whatever the price the car is sold for. The charity that sells the car must then send you a receipt for the sell in order for you to claim a deduction. The 2005 law states that the charity must have the receipt to you within 30 days of you making the donation.

So under the current tax law if your car is sold for more than $500, your tax deduction will be equal to the gross sales price. That is before any deductions are taken. You will receive a letter from the charity, which includes all the information required by the IRS. You will want to include a copy of this letter with your tax return. If your donated car is sold for $500 or less the law states that you can deduct the fair market value of the automobile up to a maximum of $500. You can research the fair market value of your auto at the Kelley Blue Book website. The IRS requires that you use the "private party" valuation option. The tax letter you will receive for the vehicle will indicate that your car sold for $500 or less and once again will include all the information required by the IRS.

If your donated vehicle is used by the charity, or given to a person in need by the charity then a different set of tax regulations will come into play. In this case you maybe able to claim the full amount of the market value placed on this type of car. The IRS has a publication titled, "A Donors Guide to Car Donations", and it details the regulations for all situations.

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