| Don't just take what the IRS gives you. When | | | | Some recommend actually selling the car first, |
| you donate a car to a registered charity, you can | | | | then donating the sale proceeds directly to the |
| claim this as a tax deduction. You can also time | | | | charity. You're able to claim this amount as a tax |
| when you donate a car to reduce your taxable | | | | deduction. However, most times it's far more |
| income. This will put you into a lower taxation | | | | easy to just donate a car that is running. This is |
| bracket. | | | | especially true when the charitable organization |
| When to donate a car deliberately to reduce your | | | | does the paperwork on your behalf. |
| tax is best done with advice from your | | | | If, of course you sell it by yourself, you will have |
| accountant. If you think you may come close, | | | | a lot more control when you donate a car than if |
| you'll need to do some arithmetic to work out | | | | you simply let it go to a charity or one of their |
| where are in relation to the next lower bracket. | | | | representatives. If this happens, especially in the |
| This is especially true if you have making | | | | case of low value or unreliable vehicles, the |
| quarterly payments, as most small business | | | | charitys representative will simply sell the car on |
| owners do. It may only take a couple of thousand | | | | the wholesale vehicle market to close the sale, |
| dollars to put you onto the lower rate. Even a car | | | | get the money quickly and keep their costs down. |
| that doesn't run that well can be donated to a | | | | Cars that are disposed of on this wholesale |
| recognized charity. | | | | market, are more than likely to receive a portion |
| In this case you need to decide whether you are | | | | of the cars estimated market value. This may not |
| going to donate a car in good running order, or a | | | | give you enough of a tax deduction, to make the |
| less reliable one. To claim the maximum deduction, | | | | exercise worthwhile. You will also be without a |
| it's better for you to donate a currently working | | | | car, so do your homework before you donate a |
| and licensed car. | | | | car to charity. |