Have an old car you would be willing to donate? If you’ve been holding onto an old car that is really not worth the time and effort it would take to sell it, donating the car can be a terrific alternative. The best part is that you can get a 100% deductible receipt that will give you the full amount that your vehicle is sold for. So not only do you find a fast way to get rid of your vehicle, but you get the money for it anyways, all while helping someone in need. The top three charities for donating used vehicles are Wheels for Wishes, Car Donation for Vets, and Charity Motors. If you are interested in donating one of your vehicles to charity, check out these most frequently asked questions about car donations.
Wheels for Wishes is a car donation program from Make-A-Wish. Your donation to Wheels for Wishes goes to helping children in your local community. Donation proceeds go to making a child’s wish come true. In addition to Cars and SUVs, they also accept boats, RVs and motorcycles. Wheels for Wishes offers convenient and easy pick up of your vehicle, so you don’t even need to worry about transporting it.
Car Donation for Vets is a California-based charity that aims to help veterans and their families who are struggling. Help our nation’s heroes by donating an unwanted car in exchange for a 100% tax deduction. Money goes to help active duty, wounded military and veterans alike.
Charity Motors has been making a difference for over 20 years by accepting car donations that go to help a number of different charities. Additionally, for cars sold by Charity Motors, 50% subsidy is provided for low-income families looking to buy a car. When donating to Charity Motors, you can also expect to get the full fair market value of your car. Having donated over $100 million in gifts and subsidies, you can be sure your money goes to a worthy cause.
With charities like Charity Motors, you can in fact choose who your money helps. All of the proceeds generated by the selling of your vehicle go directly to the charity or church of your choice. For more information, you can contact Charity Motors via chat or by telephone.
Not all charities will qualify you for a deduction, so it’s important to be aware of that fact if you care about getting the deduction. For the charity to qualify, it must be recognized by the IRS as a 501(c)(3) organization. All of the top three charities for car donations will qualify you for a tax deduction.
To donate your vehicle, you’ll need to fill out an online form - complete with your name, address and other relevant information. After that, any one of the top three charities can pick up your vehicle for free, towing it to their headquarters. The vehicle will then be sold, and you will get a receipt for your donation that you’ll need for deducting your donation from your taxes.
How much you get for your vehicle depends on your vehicle’s fair market value. However, you can only get up to $500, so if the fair market value exceeds that amount, the most you can get is $500. Additionally, if your vehicle is sold for less than $500, that amount the vehicle is sold for is the maximum amount you can deduct.
In 2018, many taxpayers will find themselves in a new tax bracket, which means they could end up paying more in taxes. Along with this, standard deductions have doubled for most individuals, which also means that for some itemizing deductions may not be beneficial to everyone, but this will depend on how much you donate to charity.