subject: Charity Car Donations [print this page] Are you in the market for a new car, but you are not sure what you should do with your other car? You could trade it in toward getting a new car or you could sell it but both of those come with a few hassles. There is another option which most people are finding very helpful to their needs of disposing of their old car in a good way, charity car donations.
Charity Car Donations are simple and quick for the most part. You just need to call up your local car donations place and tell them you have a car to donate and they will come and pick it up. There are some things that you should know about charity car donations however, so that you do not find yourself worrying about the IRS.
The very first thing you want to do before even thinking about donating or selling your car is to take pictures, inside and outside of the car. It is best to take pictures with a phone that can place a date on the picture. Charities are mostly trust-worthy, however into todays world you are finding more people who are out to take other peoples car and money for their own gain.
If your car needs to be fixed up a bit before you donate it then make sure you keep all your receipts which will add to the value of the car, such as battery receipts and new tire receipts.
Your number two step when donating your vehicle is to get a receipt from the car charity organization. You will want to make sure it has your car listed, the date, time of pickup and information to the car such as the make/model and V.I.N number.
Once the organization has sold your car then you will receive a sales price within 30 days. If you do not, then contact the organization.
When you go to do your taxes you should already know exactly how much the car, if sold went for and this amount needs to be exact when you add it to your donations list. If you do not, then you could have some trouble with the IRS.
You will need to fill out portion A of IRS Form 8283 if your car is worth more than $500. Portion B is your car is more than $5,000 along with getting an appraisal. You can generally find out what your car is worth by looking in the Kelly Blue Book but it never hurts to go to an independent appraiser to get a second look.
Charity car donations can be a great way to get rid of your old car so you can bring in a new one and it is usually very helpful to the person who is getting your old car. However, you should always fix up your old car to its fullest potential before opting to donate it. That way the person in line to get it will feel like they are driving a brand new car just as you will be.
