1. Donate A Car To Charity: What Car Donations Can Do to You
as Donor
Donate Car Los Angeles Suggestions
Giving away used or old vehicles to charity is one benevolent way of disposing old clunkers
in our garages. You may not be able to get the full value of your car through auction. Car
donation on the other hand is more profitable. It is because you can write-off the proceeds
when you file your tax return. By following the guide set by the IRS, you can profit from the
rewards provided by the government to would-be donors. Here is a list of tips on how to
make car donation process smooth.
Appraise Your Vehicle
In order to get the full benefit of car donation, you must take your car to a reliable appraiser.
A reliable appraiser must evaluate your vehicle to prevent IRS in questioning your
application. The FMV will be your basis later on when you file your tax return.
Follow the Guide Set by the IRS
To avoid inaccuracies, you must follow regulations set by the IRS. For instance, if your car is
valued less than $500, follow the guideline set for this category. The IRS allows up to $500
deduction for this scenario. For vehicles with FMV of $500 above, the proceeds of the vehicle
is the allowable deduction assuming the charity will sell the vehicle back to the market. But if
the charity will use the vehicle for its operation instead of selling it, the FMV will automatically
be deductible value. For more information about the IRS guideline, read the Donor’s Guide to
Vehicle Donations, or visit the IRS website.
Keep Important Documents and Records
To avoid confusion, you must have a copy of all documents regarding the vehicle and the
transaction that transpired during the donation. Acknowledgement from the charity must be
kept and attached to the tax return. This will serve as the basis for the value you used. It is
also important to get the details of the charity. Keep records of the terms and condition as
well. These documents will be your proof when you apply for a write off when you process
your tax return.
The time will come when you have to decide how to dispose your old car so you can
purchase a new one. You can sell it and add the proceeds to your next car purchase or you
can trade it in so you will no longer have to pay for the full amount of a brand new vehicle.
But you can always dispose your used vehicle through car donation and experts say that it is
more advantageous if you select this route.
Donate A Boat
Sending your vehicle to charity is another amazing way of disposing old vehicles. For
experts, this is actually better than selling or trading in especially if the car has little value in
the market. There are three good reasons why this is better than to auction it back to the

2. market.
Car Donation as Tax Deduction
The value of the donated car or truck is tax deductible according to the law. The government
particularly the IRS awards citizens who give their vehicles to bona fide charitable
institutions. For instance, if the vehicle with fair market value of $1,000 is used by the charity
as part of their daily operations, you can use that amount as deduction. If the vehicle is sold
at FMV or below FMV, you can also use the proceeds as tax deductible. Of course you need
to follow the rules set by the IRS to qualify.
Save Money from Unwanted Vehicles
Vehicles tend depreciate in value. Moreover, maintenance is quite expensive in old cars.
They broke down every now and then plus their needs are more special and urgent than
before. This is the reason why it is not always advisable to sell a car. Old vehicles are usually
shunned due to repairs. As such it is better to donate them to charity where the needy can
find a better use for it. They can use it for their operation or they can always sell it back after
a few repairs and you can still deduct whatever proceeds they get in your tax return.
Giving Back to the Society
Lastly, donating to charity is always a good thing. That is why if you need to dispose your
vehicle always think of the needy. You may no longer see any value in your old car but these
people will be able to use it in their endeavor.