In order to maximize the tax benefits of donating your car, you need to have a few important details in mind. One, you will want to determine if you can get any type of charitable tax deduction for donating. Second, you will want to figure out how much money you are going to donate and where the money is going. And third, you will want to figure out if donating to charity is really the best option for you. There are many tax benefits associated with donating your car to charity but there are also a few things that you need to consider before you choose to donate.
First, some charities will only accept donations made on their premises, some will not. For both types of charities, the IRS will consider your location and your business status when determining if you should be entitled to any type of tax deductions with regards to your car donations. Second, you should also think about what you would receive from donating your vehicle. For example, charities that receive a percentage of the sale price of the donated vehicle will not be as appreciative of your donation as those that receive a straight percentage. Donating your car will most likely result in a lower amount deducted from your taxes so be sure to think about this before you donate car.
You will need to determine what your charitable organization will get with the sale of your used vehicle. Generally, this comes from the fair market value or the depreciated used value. However, if you feel that you can get a better deal, you may wish to consult with a professional that can give you a more in depth look at the different types of tax deduction you will be eligible for by donating your vehicle. There are a number of people who feel that donating to a charity should always involve getting something back in return. There is nothing wrong with this philosophy, however if you really want to maximize the amount of tax deduction that you are eligible for, donating your used vehicle is probably a good way to go.