FAQs When Donating a Vehicle

While donating a vehicle seems easier compared to selling, which entails marketing, the donation process can be confusing. If you’re not careful enough, your vehicle might end up in the wrong hands. Therefore, it’s crucial to have an idea of how car donation process works and how it benefits you.

So how does it benefit you? When you’re donating your car to a charity group, you may think that it’s just a contribution. The truth is, besides easily getting rid of your old vehicle, you also become entitled to certain tax deductions based on the sale price of your vehicle. Sure, it’s true you won’t be able to make money from the sale, but often the tax deductions are worth much more and you are supporting your charity. Continue reading

Tax Deductions for Car Donations

Donating an old vehicle is a win-win situation. On the one hand, you’re helping a charitable organization do meaningful work; on the other, you can write off the donated car as a tax deduction.

Just how much can that deduction be, though? The following section provides an easy to understand guide:

If a Car is Valued at $500

If your car has a fair market value price of at least $500 but sells at lower that amount, you can claim the full $500 deduction just the same. Consider this a pat on the back for doing a good deed. This “sub-$500” rule applies to all succeeding scenarios described below. Continue reading