Whether it’s on its last legs or ready to be carved up for parts you can choose to donate used cars, deciding to get rid of an old car is usually a matter of making a little extra space in your garage and having a little more cash in your wallet. These considerations make total sense, but they’re not the only ones available to a car owner. Some people might be willing to donate their used cars to support worthy and charitable causes. At the same time, donating your used car can provide you with a useful and valuable write-off come tax season.
Donate Your Used Car to a Worthy Charity
Many people have favored charities that could benefit from a working automobile to help them with their work, whether it be providing the elderly with rides to doctor’s appointments, transporting food to needy people, or providing vehicles to newly arrived families and refugees.
Even if your car is non-functioning and ready to be scrapped, its FMV (Fair Market Value) as a source of valuable metals, glass, rubber and fluids can be transferred to a charitable institution. For example, Kenny U-Pull accepts donated cars to help fund the Kidney Foundation of Canada’s vital programs, such as medical services, organ transplants, and medical research.
Receive a Tax Break for a Donated Used Car
Depending on the status of the organization you donate your used car to, you may be eligible for a tax benefit. (Usually, the organization has to be registered as a non-profit organization).
The value of your car will be determined by its model, make, and condition, as well its repair and modification history. The minimum value your car could be evaluated at according to FMV guides is usually around 500$, but your car could easily be valued higher if it’s in good shape.
About 30 days following your donation, you should receive the relevant documentation to claim your tax benefit, from the organization, by mail or email.
More Benefits for You
Donating a used car to charity has the benefit of helping a worthy organization, as well as providing you with a clear garage and a substantial tax benefit.
But there are other boons as well.
For one, you won’t have to worry about selling the car yourself, avoiding all the time and trouble of taking pictures, posting ads, and meeting streams of finicky “tire-kickers” during your precious evenings and weekends.
Also, you’ll get your car towed off your property for free, eliminating the need to schedule a removal with a towing company at your expense.