Originally posted on April 11, 2020 @ 8:58 am
Know While Donating a Car to Charity For the Kids
Thinking about getting rid of that old clunker that’s been sitting in your driveway far too long? Are you itching to upgrade your existing ride to something a bit more contemporary? You’ve got plenty of options. You could slap a ‘FOR SALE’ sign on the windshield, put an ad in the local paper, and see if there are any takers. Or, you could do something with more impact – donate car to charity in New Jersey – and get some good karma in the process.
While fashions and trends change, for most people, their love for their cars remain the same. Most of all it reminds them of the good old days. However, like everything else, there comes a time when one must part ways with even the most loved possessions. At this time, one must think with mind and not follow the heart blindly. The car might have meant anything, the car might have been like the ‘blue eyed boy’ of the class, but it needs a change. Obviously, you can’t let it go at hands that won’t value your car at all, so its obviously a fare choice to donate the car for kids and sacrifice it for the greater good.
When to donate your car?
The ideal condition for donating is a running vehicle. Although most of the organizations that manage car donations for charity, takes it irrespective of the fact that it runs or not. A non–running car still has value – the best scenario is a car that starts, though. It doesn’t have to be washed recently – no need to get it detailed or anything like that. If it has minor mechanical issues, that seems to be okay too. What is important is that your desire or wish to ‘DONATE’. That is the starting point. From there, the details get less complex. The only real requirement is that you own the car outright with no lien holders. The collection company sells the cars or uses the parts. In order to do this, they must have the title. If you don’t have a copy of the documentation, they can help you obtain it.
What confusions do you have prior to donating the car?
Well, there are some confusions that one might come across prior to donating the car. The ultimate decision actually depends on two crucial factors: one, whether you want to make money from the used car, and second, whether you want to feel the burden of additional paperwork during the taxation periods. These two questions being answered, sorts out all the confusions before donating. It is very important to know that your decision to donate a car in New Jersey won’t bring you any kind of net cash profit, the only financial benefit you’re likely to receive is the ability to write your donation off as a tax deduction, which could actually get you some kind of tax break. This might turn out to be a bit tricky, however, because the IRS only allows one to claim the ‘fair market value’of the car and this rarely aligns with its Blue Book value. You’ll also be required to keep all documentation of your donation, including paperwork received from the charity organization.
Often while one thinks for donating cars, there are some conflicting things that are being heard about the car donation process and how the tax deduction work with the vehicle donation. Is it better to go for car donation for kids and get a tax write off or sell it to the local scrapyard for few hundred bucks? There are lot of myths that go around in the market and in order to debunk them, and provide you with some favorable suggestions, there are some questions and answers clarified to sought after the issues of tax deduction processes.
There’s a deadline for the current tax year if you want to get a tax deduction and its a convenient way of saving time and money.
Thats plain FACT and no MYTH is associated to it. Beware, every year the 31st December is the last date for the tax counting and in order to get tax deduction, it must be donated prior to the date. Getting your car ready for sale often involves spending time and money fixing and cleaning it up. Whether it’s a smaller expense like having to get your car detailed or a costlier mechanical fix, these are all expenses you don’t have to mess with when donating.
You get tax deduction that you can’t USE
That’s both MYTH and FACT! Since charitable tax deductions, including those received for car donations, benefit everyone differently based on their income bracket, you should determine whether you will file for standard deductions or whether you will itemize your deductions. If you only file for standard deductions, you probably won’t get much tax benefit from making a car donation. However, if you itemize, a vehicle donation will benefit you by lowering the amount of taxable income.
Fair Market Value of the vehicle can’t be apprehended anymore
This is a complete MYTH! Well it is true to some extent that the Fair Market Value of the car is tough to achieve, but it’s not completely impossible. There are some stricter guidelines which being followed allows you to achieve the FMV. They are: one, if the center for car donation makes some significant changes to sell the vehicle at a higher price; two, if the charity uses the vehicle in the course or their work; and finally, if they re-donate the vehicle to a qualifying needy individual. If you have a higher end and highly valuable vehicle, call or e–mail the charity you are considering making the donation to, and ask them specifically if they have that type of programs that allows you get the fair market value deduction.
Now as you’ve dispelled the confusion between all the myths and facts regarding car donation, make your move early and donate your car as that might be the better route for you to take.
Author Bio: Daniel Bradstreet is one of the renowned blogger who has been in the car trading business for long and has also indulged himself in many charitable programs. In the recent article he has mentioned of some legal tricks that must be taken care of while one claims for the tax redemption while they donate a Car to charity in New Jersey.