| What can be more noble than donating your old | | | | vehicle. This is also true for planes, boats, and |
| car to charity? You save yourself the hassle of | | | | other vehicles. Specific tax forms have to be filled |
| having to sell the old used vehicle outright. You | | | | out and filed in order for the fair market value |
| don't have to run an ad, answer the phone calls | | | | deduction to be allowed. An internet search |
| regarding the car, and stay home to show the | | | | reveals that almost every charity will accept the |
| car. You don't have to worry about test drives, | | | | donation of cars and other vehicles. They make it |
| bad checks or who is going to knock on your | | | | very simple for the donor in that all the donor has |
| door. You can avoid all of these problems by | | | | to do is to sign over the title. The charity handles |
| donating the car to charity and obtaining a tax | | | | the pick-up and transportation of the vehicle. Most |
| deduction for the donation. Beware! Part of this | | | | charities then sell the car at auctions like E-Bay. |
| tax loophole has been closed. Before you donate | | | | The money from the sale is then used for their |
| a car to charity you should know what the | | | | charitable works. Some charities, like the Salvation |
| relevant tax laws are. It used to be that the | | | | Army, have their own used car lots where they |
| taxpayer who donated a car to charity could | | | | sell the donated vehicles. This is the situation that |
| deduct the fair market value of the vehicle. Now | | | | results in a $500 tax deduction for the donor. |
| the allowable deduction is $500 for a car donated | | | | Some charities accept car donations and use |
| to charity if the charity sells the vehicle, which | | | | them for occupational training for the |
| most charities do. You cannot deduct the fair | | | | disadvantaged. They fix the cars and make |
| market value of the donated vehicle unless | | | | improvements and then give the car to a needy |
| certain conditions are fulfilled. The charity must | | | | individual. This kind of situation results in people |
| make improvements to the car and give it to a | | | | receiving occupational training and a needy |
| needy person. If the charity does this with your | | | | individual receiving a functioning car. This is the |
| donated vehicle and it is documented, then you | | | | situation where the donor can deduct the fair |
| donor can deduct the fair market value of the | | | | market value of the car. |