subject: Precautions You Should Take Prior To Vehicle Donation [print this page] Vehicle donation is a very noble gesture that can benefit you in more than one ways. Through a vehicle donation, you can also get IRS tax deductions which are equivalent to the market price of the donated vehicle. So, the first precaution to take when you are thinking of vehicle donation is to qualify for the tax deduction. You can do so by choosing a charity for vehicle donation, which is IRS approved as per 501(c)(3). There is plenty of online information to assist you with vehicle donation and also information about charities which accept vehicle donation in and around your city.
When you are planning for vehicle donation, make sure you have estimated the market price of the car based on its make and model. The Kelly Blue Book is used by a lot of people, although that is not advisable, owing to the inflated values provided. One must be honest in the market value estimation at the time of vehicle donation as you may need to submit how you arrived at the market value estimation at the time of claiming for tax deductions. This would not be required if you make a vehicle donation to a charity that auctions off the donated vehicles in a public auction. In such a scenario, you will have to receive the sale statement confirming the sale price of your vehicle in the auction, within a month of the sale. This sale statement can be submitted along with the written acknowledgement from the charity to claim tax deductions for vehicle donation.
When you are planning for vehicle donation it is important to clean the interiors of the car properly and if possible the exteriors too as that will save some money for the charity. When you make a vehicle donation, make sure you cancel the insurance if you still have it for the car. Moreover, for making vehicle donation, there should not be any pending loan amount on the vehicle. This is why you have to show the proof of ownership of the car at the time of vehicle donation. Make sure you have the certificate of title handy to transfer the ownership. This is an important precaution to take. When you want to make vehicle donation but have lost the certificate of title, you have to inform the charity beforehand. Similarly, when you want to make vehicle donation but are too busy to drop off the car, you can request for pickup or towing service.
