Have you just upgraded to a brand new car and don’t know what to do with your old one? Although selling it may be your first thought, you might be getting more if you donate a car. Here are a few things that you may want to consider when donating your vehicle.
1. You can dispose of the car much easier
You can donate any non-working vehicle without any hassle. Some goodwill car donation centers are more than willing to accept your vehicle even if it’s not running. Ensure that the car is still in good condition before you decide on donating it.
2. You can help people in need
One of the best feelings that anyone can experience is the idea that you were able to help others who are in need. You could either sell the car at a very affordable price or use it for charity purposes. Whichever the reason may be, rest assured that your vehicle will make a difference.
3. You may qualify for a tax deduction
One of the most practical reasons why you should donate your vehicle is to give you a better chance for a tax deduction. Donating your car will qualify you to take part in a Fair Market Value Tax Deduction that will be applicable on your next income tax return.
The amount that you’ll save will depend on the car’s current value. If your car sells for at least $500, then you may subtract the care’s sales price for at least $500. As such, the higher the car’s value, the larger amount you’ll be able to get a tax deduction.
Donating a car is a great help for people who are in need. Not only will you be able to help other people, but you’ll receive payment for the car once someone sells it through tax deduction.