Why Donate Your Vehicle Series: Receive a Top Tax Deduction
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Get Richly Rewarded for Getting Rid of Your Clunker
Do you have an old and unwanted vehicle that’s just taking up space in your garage or driveway? Perhaps it’s a car that’s been in your family for years, but no one wants to drive it anymore. Or, maybe it’s a clunker you keep saying you’ll fix someday but never got the chance to do so.
Whatever the case, maintaining a vehicle you no longer need can be such a hassle. It can cause you endless headaches — from the soaring costs of repairs and maintenance to the hassles of selling it.
The good news is that donating that beater to charity can easily and quickly solve your car woes. Aside from getting rid of your beater at no cost to you, your donation will touch the lives of the charity’s beneficiaries. It will also bring you great rewards, including getting entitled to claim a handsome tax deduction.
Why Donating a Car to Charity Means Huge Tax Savings
Since the IRS allows individuals to claim a charitable contribution deduction on their tax returns, donating your car to charity will qualify you to claim a tax deduction. This can significantly reduce your taxable income, thus helping you save money.
When you donate your car, the nonprofit may use the vehicle for charitable purposes or sell it, with the proceeds used to help fund its programs. The amount of the proceeds, or the sales price of your car, is the amount of tax deduction you can claim.
What You Need to Know About Vehicle Donation Tax Deductions
To claim your tax write-off for your vehicle donation, you need to itemize your tax return. Add up all your itemized deductions to make sure their total is greater than the standard deduction amount for your filing status.
Once your vehicle is sold at an auction, the charity will send you its 100% tax-deductible sales receipt. If your car was sold for $500 or below, you can claim as your tax deduction its actual selling price or fair market value up to $500. You may want to use a reliable used-car price guide or check the prices online for cars of the same make, model, year, and condition as yours to determine your vehicle’s fair market value,
If your car was sold for more than $500, the tax deduction is restricted to the actual sale amount even if its fair market value exceeds the selling price.
How to Claim Your Tax Deduction
Proper documentation is necessary when claiming a tax deduction for a vehicle donation. After selling your vehicle, the charity will send you a written acknowledgment that shows the following information:
- Your name
- Vehicle’s description
- Vehicle Identification Number (VIN)
- Donation date
- Vehicle’s selling price
- A statement confirming that you received no goods or services in return for your donation
The tax forms required for claiming a vehicle donation deduction vary based on your donation’s value. If you’re claiming a deduction of up to $500, you should keep the written acknowledgment from the charity with your tax paperwork.
However, if you’re claiming a deduction greater than $500, you must attach the charity’s written acknowledgment to your tax return and complete Tax Form 1098-C (Contributions of Motor Vehicles, Boats, and Airplanes). You may also need to complete Section A of Tax Form 8283 (Noncash Charitable Contributions).
If you’re claiming a deduction greater than $5,000, you must attach completed Section B of Tax Form 8283 (Noncash Charitable Contributions) and obtain a written vehicle appraisal.
If you need more specific information about charitable contributions, you may consult a tax advisor or the IRS. You may also want to check out the IRS’ A Donor’s Guide to Vehicle Donation.
Here’s How You Get a Lot More Than Just a Top Tax Deduction
When you donate a vehicle to us at Breast Cancer Car Donations, you’ll get more than just a top tax deduction. While our free towing services from any point in the country are always a plus, the material benefits pale in comparison to the immense sense of satisfaction you’ll feel for doing something that can help save the lives of breast cancer patients in your local community.
Our team will put your car up for auction, with the proceeds going to our breast cancer-focused charity partners. These IRS-approved 501(c)(3) nonprofit organizations cater to uninsured and destitute breast cancer patients, providing them with financial assistance to help cover the costs of their treatments, doctor consultations, hospital fees, medications, follow-up care, and other essential healthcare services.
Our charity partners also provide their other beneficiaries with easy access to local healthcare facilities where they can get free breast cancer screening and diagnosis.
Your charitable contribution will also be used by these charities to promote breast cancer awareness and provide prevention, education, and counseling services to the public.
We accept nearly all types of vehicles, including those that need a lot of work. Feel free to visit this page to learn what else you can donate aside from your unwanted car.
Head over to our FAQs page for more information about Breast Cancer Car Donations, including our quick and convenient donation process. If you have any questions or concerns, don’t hesitate to write to us here or call us anytime through our toll-free hotline at 866-540-5069.
Give the Gift of Hope Today!
Give the gift of hope to needy breast cancer patients in your area. Your car donation will help them overcome the biggest challenge in their lives. Call Breast Cancer Car Donations at 866-540-5069 or fill out our secure online donation form now!