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Car values are hard to maintain. You try to buy a car that will retain it's resale value, but things just don't always work out.
Harsh winters, unavoidable accidents, excess mileage and changes in consumer tastes can all conspire to make your car much harder to sell you had hoped.
That SUV that seemed like a good idea four years ago is a gas guzzling problem in today's fuel obsessed market.
It's even harder to get full blue book for your car in a trade in. The dealer has the same trouble selling your old car as you do, and has overhead expenses to cover in the bargain.
Even the guaranteed price for your car ads are just a come on. Sure, they may give you two thousand dollars for a car that doesn't even start, but when you try to negotiate the sticker price, you will find that the dealer has other ways to get his money out of the deal.
A recent development in charitable giving has opened new ways to deal with a hard to sell car.
When you donate car to a charitable or other non-profit organization, you are entitled to list the value of the car as a tax deductible contribution when you file your taxes.
But more importantly, you are helping out people in need, or causes that you believe in. Even if you can only claim a fraction of the value, you know that the money that you spent on the car in the first place is going on to do some good.
There are certain considerations that you should keep in mind.
First, be careful who you donate to. Tax laws are very specific regarding what can be called a charitable or not for profit organization. It is your responsibility to make sure that your intended recipient is legitimate.
Second, make sure that you accurately value vehicle when you donate cars, especially if you plan to claim more than a five hundred dollars. The higher the value that you claim, the more likely the IRS is to question the value.
Once you pass the 500 limit, the IRS wants a lot of additional information, including how much the charity received by selling (or scrapping) the donated car. You are not allowed to claim more than the charity actually got for it.
Many charities make it easy for you to donate car. Some will pick it up and transport it to their receiving site. Many have people on staff that can help you with the reporting of you contribution.
However, don't rely on their advice when preparing your taxes. Consult with your tax preparer or adviser regarding just what to do to properly account for this transaction.
The choices of who to give to are nearly endless.
Religious groups were among the first to get into the spirit of the donate car to charity idea, but the list doesn't stop there. Environmental groups, homeless shelters, medical research and treatment organizations and food banks are just a few of the kinds of organizations that can benefit from your old car.
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