used car donation

Make a donation with your used car, no matter how old the vehicle is.


It is estimated that every year, more than a million Americans donated their cars. Why do they donate their car? Well, few reasons: A. The proceeds go to charity organizations and it provides for the donor a good feeling of contributing to society. B. its tax deductible (Less than it used to). C. The car is being towed or driven away by the company who arranged the deal.

Unfortunately, whether through ignorance, confusion or greed, a substantial percentage of car donors have been deducting the full "suggested retail price" - what a dealer would get for reselling your trade-in instead of the fair market value. That's far more than the IRS had intended, costing the government millions in lost tax revenue.

The charities weren't making much, either. Most of the donated cars were sold by the charities for a pittance at auction, and middlemen who administered the programs on behalf of the charities took a large percentage of those meager profits.

So IRS changed the rule last year. From now on, if your car is valued more than $500, the deduction is limited to the charity's actual selling price. The donor must attach a statement of sale to the tax return in order to receive the deduction. (The charity is obligated to provide the statement within 30 days.) You are not entitled to know the deduction amount before donating your car. Although the IRS has closed the loophole in the law, there is still a way to deduct full market value of your vehicle: If the charity uses the car itself to further its specific purpose.

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MBA - International Trade & Finance - Heriot-Watt University. Bsc. Computers and Information Systems - Long Island University - C.W Post Campus.
Hobby: Photography.
Married with two Children.

Owner Editor of: http://www.Cars-I-Like.com

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