Auto Maintenance: Benefits of Keeping the Car in Shape

Donate A Junk Car To Charity And Get A Tax Break

5 January 2015 by Brent Porter

Having a junk car in your yard can be an unsightly burden. It takes up space and sometimes looks ugly. There are several ways to get rid of a junk car without spending a dime. One way is to sell your car to a wrecking yard for a small amount of money; anther is to donate it to a charity. By donating to a charity, you can help out a good cause while getting rid of an unsightly burden.

Contact the charity: If you decide to donate your car to charity, the first step is contact the charity of your choice directly. While many charities accept vehicle donations, others do not. Most charities that accept vehicle donations will accept non-running or even wrecked cars, but some will not. If you want the charity to have the maximum donation value from your vehicle, do not use a middleman.

Tell the charity about the condition of your vehicle and ask if they will accept it. Ask about getting a receipt for tax purposes and how and when they determine the car's value. Generally, you will be able to write off the amount they sell the vehicle for. Check with the IRS for more information.

Clear title issues: Take care of any liens and other title issues before donating your car. Your state's Department of Motor Vehicles will have guidelines on how to do this, as well as information on how to donate your car to charity. The title of the car should be transferred to the charity before making the donation. Having an open title may cause liability issues down the road, so it's important to clear and close the title when donating. While some charities will accept cars without a title, most will not. Not having a title substantially limits what they can do with the car and may result in it being sold at a lower price. Selling the car for less money means less tax credit for you. 

Remove personal items from vehicle: Be sure to thoroughly check and remove any personal items from the vehicle. Double check trucks, glove boxes, containers and the like. You do not need to wash the car or do any interior cleaning.

Arrange for pick-up: The charity will employ their own tow trucks or contract a towing company like A-1 Towing Service to pick up your vehicle. Arrange a pick-up time or a window of time. Be sure to get a receipt or other documentation of the pick-up.

Donating a vehicle to charity can be a good way to get a tax deduction without the hassle. And, it helps get rid of a burden and, possibly, and eyesore.

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