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Donating A Car To ...

March 08, 2016 15:47

There is a fairly good market of used car sales in India, with almost all the prospective buyers deciding to dispose their old vehicle some time or the other. One can simply sell used cars to the dealerships or to the scrap dealers depending upon the vehicle's condition. There are also those people who decide to donate a car to charity for goodwill and other purposes. The actual reason behind car donation is one gets a considerable amount of tax deduction from his/her income. Vehicle donation can be done to a charity, which will use that automobile for transporting goods to locations or will give it to someone else in need. However, to score the right amount of tax deduction, there are certain tips and advices, which one must follow:

  1. People are always advised to ignore the brokers as they might give lucrative schemes but the car will not be delivered to the person in need. While donating a car, direct deals are always beneficial as these middle parties keep half of the vehicle's value to themselves only.

  1. One can search for a worthy charity for vehicle donation through the internet or enquire in the local market. If the work is to be done for the purpose of goodwill, then it should be done properly so that the maximum benefit is going to the agency in need.

  1. In order for a person to qualify for tax deduction on car donation, he/she must first check if the recipient charity is registered by the Internal Revenue Service (IRS) or not. Be it a church or a charitable trust, people should first examine the background of the same and then only go ahead for vehicle donation.

  1. The IRS decides certain limit on goods being donated to a charity. If the amount while donating a car exceeds the limit, then the required papers and documents for the deal have to be submitted in order to avail tax deduction. After giving the car for donation, all the valid papers must be signed with the consent of all the parties involved.

  1. It is also recommended that while donating a car to the charity, its delivery must be made with by the users only and the same shouldn't be asked by the charity. This will increase the profit of that concerned agency and it would not have to pay any vehicle transporting firm to pick up the car and deliver it.

  1. After all the procedures of car donation have been completed, people should always re-title the vehicle from their name to the name of the charity. This process benefits the real owner during later stages if by chance the vehicle has been used for illegal purposes or has been given a ticket for not following traffic rules.

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