Is it more worth it to donate a car or sell it for cash? Learn about the tax write offs for donating a car, here.
You’ve seen the signs that say you can donate a car to a good cause.
Would they even want your car? Whether it’s the salvation army car donation you’re looking into or another organization that wants you to donate your car, you might not be sure it is even worth the hassle.
Continue reading this article to learn more about car donation and what you need to know.
Look Out for the Tax Man & Scams
While it might seem like a good idea to help a good cause by donating your car to a charity — be careful. If you don’t work with a good charity, you might find yourself mixed up in a scam or other problematic situation.
Before you decide you want to donate your vehicle, make sure you speak with a professional like a CPA to see what their advice is on the specific charity you’re considering. If you claim more than what you’re supposed to for your car donation this can get you into trouble with the IRS.
Helping out a charity and getting rid of a car at the same time might seem like an attractive way to help out a charity and get help yourself. While there are some organizations that are on the up and up, you do have to do some extra work to make sure.
Considering Selling Your Car and Donating the Proceeds
Instead of trusting someone else to give the charity of your choice the money from the sale, why not sell your car and donate the proceeds instead? When you do this, you’ll know where the money is going and you’ll still get the write-off on your taxes.
The good news is the write-off on your taxes won’t be anything to worry about since you’ll be able to prove a specific monetary amount.
While that might sound like a good idea, you might be wondering, “Who buys cars that don’t run?” You should know that there are companies that specialize in buying cars that don’t run. You can look around for some in your area and you’re sure to find companies that will have use for your car.
Doing a Good Deed
Wanting to do a good deed is great but you need to make sure to protect yourself from any legal matters. Selling your car and donating the proceeds will allow you to have the pleasure of doing a good deed without worrying you’re getting scammed or doing something you’ll be in trouble for.
Making Sense of When to Donate a Car
Now you can make an informed decision on whether to donate a car or not. You might decide that you want to get some cash out of it instead.
Now that you’ve learned this information, why stop there? Our site is filled with more articles that can help you as you’re increasing your knowledge of cars, donations and more.
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