Perform a good deed and get rewarded for doing it by donating a car to charity in Frederick, MD. At DARCARS Toyota of Frederick, we often assist customers who recently gifted their vehicles to charity. Discover five of the most crucial things to know before you donate your car below.
Your Tax Benefit Depends on What Happens to Your Car
The amount you claim on your tax return will depend on what your charity of choice does with the car. If you donate your car to a charity and they decide to keep it, you can claim the market value of your vehicle.
Other charities may sell your car. In such cases, you can claim the sale price. However, if the charity sells your vehicle for under $500, you can always claim the market value of your car or a flat $500 on your tax return, whichever is less.
Towing Remains Free of Charge in Most Cases
In almost all cases, the charity will arrange for towing of your vehicle. If you come across a charity that asks you to schedule the tow truck or pay for the service, consider looking for an alternative recipient. You shouldn’t have to pay for towing services out of your own pocket when donating a vehicle to charity.
Have Your Documents Ready at the Time of Donation
Speed up the donation process by gathering up your vehicle documents before the big day. If you have title and insurance documents for the vehicle, take copies for yourself. You should also consider writing down the following information:
- License plate number
- Vehicle Identification Number (VIN)
- Year, make, and model
- Mileage
Save Your Donation Receipt and Any Proof of Sale
To make a valid tax claim, you must submit a donation receipt from a registered charity and documentation related to the sale of your vehicle, if applicable. You will receive your receipt at the time of donation. Later, you should receive correspondence from the charity that provides the details of the sale. If you do not receive sale information, ask your charity to send it to you.
You Can Donate Other Vehicles in Frederick, MD
If you find yourself looking for a way to minimize your liability when tax season rolls around, consider donating a vehicle other than a car or truck. Some of the vehicles you can donate besides automobiles include:
- Motorcycles
- Boats
- Trailers
- Campers
- Airplanes
- Helicopters
- Jet skis
Improve the lives of others and enjoy a tax break in return by gifting a car to charity. When you’re ready to upgrade to your next car, visit us at DARCARS Toyota of Frederick or browse our cars for sale online today!
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