While donating a working automobile to charity's benefits have been well-defined, what about non-functioning cars? It's important to keep in mind that these autos can also be donated!
Donating Broken Cars to Charity
While donating a working automobile to charity's benefits have been well-defined, what about broken cars? It's important to keep in mind that these autos can also be donated; bearing in mind that the due return should be rather small. This however, doesn't mean that this is a worse option than simply throwing out and junking your parts or expired car.
Typically, non-functioning cars are sold at auction to be stripped for parts. Car parts tend to hold more value sold separately when the condition of the vehicle is beyond sweat and investment in terms of fixing. Often times a charity will use a for-profit organization as an agent to try to extract some potential value for these parts.
The expected return to you in terms of a tax deduction is then the subtracted value of your donated non-functioning vehicle, minus the benefit to the charity you have chosen to donate to, as well as any haulage fees as well as the potential charge taken from the third-party organization which prepared the sale.
While the tax receipt you get in return for such an exchange is typically much less than the fair market value of your vehicle, there is another way to potentially get more than this. Sometimes you can be eligible to a higher tax deduction than simply dealing your non-functioning vehicle if you donate to a program which will use the vehicle for schooling purposes.
But what if any parts are missing from your vehicle? Depending on the missing parts and the condition of the vehicle, most establishments will still be able to derive value and will admit the donation. You as a donor are not responsible for the dismantling of your vehicle. An broker of the charity or third-party agent will take this obligation.
If the car you are donating has a specially unique feature such as large storage capacity or good towing capability, it's possible some organizations will put in the effort and replace missing parts to restore the vehicle to proper working order. This is a very large advantage as you will receive more value in the form of a greater car donation tax deduction as the vehicle will be closer to fair market value.
The donation of non-functional car to charity, often times it may take a while for the vehicle to be addressed, or restore the operating conditions. Despite this, the charity should still provide you with notification of intent for the vehicle upon acceptation of your donation. This means that despite a possible lapse in time between the date of contribution and date of resale, you can still count the tax write off towards your tax return for the year in which you donated the vehicle.
For more information about donating a car to charity, visit Give Used Cars.
credit Link
http://www.giveusedcars.com/tax-deduction-incentives-and-benefits/
http://www.giveusedcars.com
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