Donating Car to Charity

If you are replacing your car, you may wonder what to do with your old car. Sometimes trading in the car can net you a significant savings on your next car. However, if your previous car is not worth much on trade-in, or if you can get the price you want through other incentive programs, why not consider donating your old car to charity?

Numerous charities are dedicated to repairing unwanted vehicles for resale to raise money for their causes. The charities rely on donations from the American public. Here is what you should know about donating your car to charity.

A car donation is tax-deductible. You are responsible for valuating the car for tax purposes, although you must also receive a receipt from the charitable organization. If the vehicle is worth less than $5,000, you can use the Kelly Blue Book valuation. However, you must be certain to select the valuation that best represents the actual condition of your vehicle.

If the car is worth more than $5,000, you must receive an independent appraisal of the vehicle. You must also file a separate IRS form.

Some clearinghouse companies exist to manage car donations for various charities. These companies can make the task of donating a vehicle a bit less cumbersome. However, it is important that you take responsibility for ensuring that the vehicle is accurately valued and the proper paperwork is filed with the IRS. Do not turn these tasks over to the clearinghouse.

As tax law is complicated, it is highly recommended that you speak with a tax specialist for specific advice prior to donating your car. This will ensure that you follow all applicable laws and receive the tax deduction to which you are entitled.

When you purchase your Certified Mercedes, why not donate your previous car to charity? You will be doing a good deed and receiving a tax benefit at the same time. Looking for a new Mercedes? Visit any of our three locations, at WestChester Mercedes, Mercedes of Fort Washington, or Mercedes Wilmington DE

[tags] certified pre-owned mercedes, donating vehicles to charity, tax benefits for donations, valuating used cars, kelly blue book, filing taxes, disposing of used cars, irs regulations, how to donate, charity donations [/tags]

Filed Under: Certified Mercedes-Benz