Do you have an old car, RV, boat, motorcycle or other junk vehicle sitting around your driveway? Why not turn it into a valuable car donation tax deduction? While you may get smaller tax deductions for donating clothing and other goods to charity, when you donate a car to charity you are immediately eligible for a car donation tax deduction of up to $500.00. If it’s a more valuable vehicle and the vehicle sells for more than $500.00, you then qualify for additional or a higher value tax deduction, or, in some cases, a fair market value tax deduction for your charitable donation.
Car donations are fast and easy and most charities will accept a wide range of vehicles, including those which no longer run and will give you a tax receipt for your charitable donation. The main thing to remember if you are hoping to claim a tax deduction for a car donation is that you should not wait until the last very minute. The deadline to donate a car or any other goods and be able to claim it as a 2012 tax deduction is midnight December 31st, however, waiting until the last minute, especially with car donations, is not a good idea.
In order to claim the car donation tax deduction for the calendar year in which you donate it, you must have committed the vehicle donation to the charity and have it picked up or at least well in the works by the end of the year deadline. The danger with waiting until the last minute to call in your donation is that you risk having your vehicle rejected after the tax deadline has passed.
While most charities do encourage you to donate a non-running car or older vehicle, situations do arise where a charity is unable to pick up a vehicle. These reasons can range from not having a tow service in your area, or the charity may consider your vehicle unsuitable for some reason. If that happens and you still have time before the end of the year deadline, you just get online and choose another charity to donate to. Of course, you can still donate the car after the deadline, however, it will then be a tax deduction for 2013 instead of 2012.
If you have questions about tax paperwork and whether you can donate a car without a title and more, please call us at 1-877-505-5775. We’d be happy to answer your questions and get you on your way to benefiting from your car donation tax deduction in 2012.