You might have seen ads like “Donate your car and get a tax break”. It might seem fictitious, but it’s actually true. Well, for some people, donating their cars to charity is easier than trying to sell the cars on their own. You don’t need to wait for someone to inquire about the car and eventually, rob you off in price negotiations.
Benefits Of Donating Your Car For Charity
1. Donating Your Car Is A Lot Easier Than Selling It
Of course, when you donate, you just have to talk with the right people and finish paper work. On the other hand, when you opt to sell your car, there are more requirements to be filled up and you need to wait for someone to inquire about the vehicle.
You don’t need to wait around for someone to be interested and you won’t need to worry about where to post the advertisement.
2. It’s For A Good Cause
Donating to people in need will make you feel contented that your car will be used for a good cause. There are many donate car charities that aim to help others by persuading people to donate pre-loved cars.
Your beloved car will be put toward a better cause instead of just putting a few extra bucks in your pocket.
3. Deductions In Income Tax Return
In the United States, it’s possible to donate a vehicle to certain charities. In return, you can claim a tax deduction on your personal income tax return. For vehicles which costs less than $500, the value of the tax deduction comes from the donor’s own estimate of the car’s value, even if the charity received less money when they actually sell the car.
This tax write off will help you when you file your taxes by just filling out a form and find the fair market value of the car.
Donating your car can result to a tax deduction as a benefit to the owner, but also helps those who are in need. If you want to do something for a cause, think about donating your pre-loved or used car instead of going through the daunting task of selling it.