Just before you donate your car, reading all these important reminders are important to further enhance your knowledge in car donation. Let’s take a look on those important aspects:
1. If your car is worth more than $5000, you will need to consult it to a car appraiser. You can check your local Yellow Pages or look on Internet for “car/vehicle appraiser”.
2. Starting year 2005, tax deduction for car donations are $5000 for single and married individuals filing separately and $10,000 for married couples who file joint returns.
3. It is not allowed to donate a car that is not fully paid. You can only donate it if a title is clear and you settled your car fully.
4. Churches and other religious entity are no longer required to file exemption applications and annual information returns. Plus, if you belong to a church and you wish to donate your car on that group, it’s tax deductible.
5. Usually, you will need to transfer the car title to the charity, copy of title transfer and by updating the donor’s car registration regarding sale or transfer.
Just inquire if the charity you wish to donate your car will be the one responsible for the transfer of title.
6. If you are asking who will pick up your car then most of the time it will be the charity who will do this for you. Just ask the charity about the procedures in doing the pick-up so you are properly informed. It is also important to consult a tax specialist if car donation will really be good for you.
7. It is also important to mention to remove your car plates in donating your car. This will prevent future liabilities to you.
8. The most final point to remember is to be aware of scam. Many websites are claiming that they are legal representative of charities. Don’t be fooled by all this website. It is very important to know if they are tie with IRS recognized Charity by looking through their web site.
Hopefully, all the content above does make sense to you. Those are just selected important things that you must know before donating a car. Stay tuned to our next post. Thanks for your time reading.