Some of us have older vehicles sitting around in the yard or in the garage without doing any good to anyone. Collecting dust is the only thing that these vehicles are doing. We do not consider selling them as we feel it is not worth the time and energy. After all, how much cash will it bring?
There are actually organizations that accept these vehicles as donations and use the fund to run their services that do a whole lot of good to our society. As a generous contribution, these donations could truly make a big difference. The charities and non-governmental organizations, that take the donations, make arrangements to pick-up the vehicle at no cost to the owner.
They also care enough to handle the title transfer requirements and provide the owner with a tax deductible receipt as vehicle donations made to charitable and non-governmental organizations are tax deductible according to the full scope of the law.
However, tax situations may vary from donor to donor, depending on the condition of the car, which is being donated.
According to the law, the IRS allows the donor to claim a tax subtraction of the worth of the vehicle up to $500.
Most of the charities generally do a good job of selling the car on a fair market value; meaning we can receive a bigger tax deduction value for the car.