To donate a car to charity was once considered to be a tax gambit. People would save quite many dollars on the tax deduction because of the car charity auction. Irrespective of the fact at what price did the car get fetched at the charity, the tax saving was the best thing then. But considering the number of cars that people would give to the charity, congress deiced to put a pause on this act and thus had restricted the deduction to be done only on one car, boat, or truck whose worth could be more than $500. After this change, if the car owners are still wondering whether to donate a car is still worth it, here are some reasons that convince on the same.
Provide better support to the charity:
This may seem to be quite obvious but donating a car to a nonprofit organization is the best thing one can do. With the economy getting tightened up each year, it is important to make some donations to such organizations. Instead of a car getting dumped or staying covered in the blanket of dirt, this is the wise option anyone can take.
Make a vehicle purposeful:
If the vehicle is put for charity use, it will be utilized well. As long as the car is put to use, it will have a better lifespan. So, making it good for charity use is worth it. Usually, nonprofit organizations use it to deliver a meal to elderly people or take people to the doctors or do some kind of charitable mission. It is always a better choice to give donate a car rather than sell it to the auto garage, which obviously will dump it later.
Healthy tax benefit:
There are going to be some strict rules, and since the laws after 2004 have changed, the process of selling or donating a car has been even more challenging. But with an approach to deducting a fair market price is still possible. If a car valued at $500 is donated and the car is used by the charity for some of its programs, then certification for the same will be received. The owner can file IRS Form 8283 during the returns.
No doubt donating a car is going to be a great approach instead of posting its ad in the newspaper and paying a hefty price for the same. The owner doesn’t have to juggle the phone calls or stick to an email conversation and still doesn’t get a fruitful result.
To donate a car is going to be a win-win situation not just for the owner but also for the charity organization. However, for the owner, it is important to make sure all the transaction is well documented once the generous contribution is made for the IRS tax filing records. Besides, getting rid of a car without giving it a proper title is just a waste. Instead, make it fruitful and donate it to those who need it.