Sunday, 27 November 2016

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Donate car tax credit and donating car for kids:How it works


Well,you must have all seen those Donate car tax credit and donate your car for kids charity adverts or messages.I always wondered what they were about and what they mean.So i decided to do some investigation of my own to see exactly what they mean and this is what i found out.

The cars donated are meant to help kids,and positively impact a child's life and education, but from what i found out,the so called charities behind them make their own gains as well.Well,there is nothing really wrong with that if they actually help those intended,the young ones,the future generation.The vehicles they accept varies.They just
about accept almost anything,as along as it in usable.RVs, jet skis, vans, buses,trucks, boats, trailers, motorcycle and snowmobiles are all accepted.Even if they fail emission test,they are still good to go.You also don't get charged for any pick ups,towing or transporting the vehicles.

After they receive your car,they then assess them and see what they can make from the car in terms of sales.After all the money raised is what will be used to change the lives of children they are meant for.The revenue raised will then be sent to charities they are meant for and  you will then receive a tax-deductible receipt in the amount the car sold for.



Now,most of the researches i made came up with the same main points.
You receive maximum tax deduction from your donation as well as a free vacation voucher.In case you don't know what that is,a vacation voucher usually is a 2-night/3-day hotel stay voucher for 2 adults and 2 children with 50 locations to choose from. So there is quite a bit of incentive there to get you to donate.

Now the amount you get as a taxation for your used car is an interesting one too.Basically,The IRS allows you to claim a tax deduction of: 
1)The value of your vehicle up to $500. It is up to the donor to determine the fair market value. 
2) The amount we sell your vehicle for, if the sale price is more than $500.But the deduction is of value only if the donor itemizes his or her deductions.
If you are still unclear, the IRS publishes a Donors Guide to Car Donation.

To determine the value of the car,they usually get experts to determine this.Many factors is taken into account.These include,the year and make/model of the vehicle, mileage and local market conditions. Basically the things you yourself look at when determining if you got a good deal on a second hand car.
Most of the time,the cars are picked up withing a day or 2 at most.

So there you are,i hope you are much more enlightened and informed now after reading this.So if you wanna help a child out there,find one of these charity organizations and get working.








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