Cars Helping America

We are all motivated by something when we give away anything that belongs to us. Some people give away their cars because they want to create space for the brand new car they just bought or because their old car is almost a heap of metal and they may be at a loss as to what to do with it. You may want to donate your car simply because you know someone may need it more. Whatever your reason is for doing it, you can actually benefit from it financial.

How does donating my car help me financially?

Donating your car equals a tax pay off! It’s true! Prior to 2005, you could have simply declared the fair market value of the car you were donating and claim the full amount on the year’s taxes. These days however, when you auction our car, you get to claim deducted taxes on the amount it was auctioned at.
What this means basically is that you can have your taxes reduced when you auction off your car to charity. If the charity decides to keep the car for its use however, you can claim the amount equal to the cars fair market price; in other words a write off of your taxes. It’s a case of giving and receiving so to speak.

What do I need to get a tax deduction on my donated car?

In order for you to get the IRS to deduct the taxes on the car you donated, you have to ensure that you obtain a receipt from the non profit organization you donate your car to in order to be able to claim either the fair market value of the car or its auctioned value. So make sure that you fill the tax form you will be handed by the organization correctly in order to collect what is due to you. You need to be very clearful while filling this form as this will help to determine if you will get what is actually due to you for the car donated.