You can donate your junk car to Church

There are many ways by which you can profit from your junk car. Just look at some buy junk cars Minneapolis ads to get a ton of information on how to dispose of your vehicle. One way to benefit from it is through tax breaks.

It is well known that folks that prefer to cut their tax bill and get rid of clutter donate stuff to a church organization. Most of the time the items are used clothing and household items. However, if you are looking to donate something bigger than a stack of old t-shirts such as junk cars for instance, keep in mind that there are rules that govern such transactions. Here is a discussion on the tax breaks for donating junk cars to your church.

Exempt Status For Donating Junk Cars To Your Church

Take note of exemptions when donating junk carsThe first step is to determine if the organization you want to donate junk cars to is a qualified charity that is approved by the Internal Revenue Service and has “exempt status” that falls under a 501c(3) organization. The church is one such organization but they are not required to file for 501c (3) status. How much in terms of tax breaks can you get if you donate a junk car to your church? If you think that the vehicle’s market value is a nice way to begin, then you are probably misinformed.

New Rules For Donating Junk Cars To Your Church

Up until 2005, it was quite simple to claim the vehicle’s full market value as the given amount of the charitable tax deduction. However, the IRS decided to investigate and discovered that too many tax filers are claiming massive deductions for their donated junk cars and charities like the church getting significantly less when they sell the cars. It is for this reason that the Internal Revenue Service decided to change the rules.

Determine How Much The Car Was Sold For

Determine the value of junk cars

To obtain the tax break, determine how much the car was sold by the church as the amount for your deduction. For example, if the church was able to sell the car at auction for $3,000, the deduction would be limited to $3000, regardless if the fair market value is higher say, $4,500. However, if the church sells the vehicle at a discount to a needy buyer or decides to keep the car for its own internal use, only then can you claim a deduction based on the current fair market value.

Determine Fair Market Value

The recommendation of the Internal Revenue Service is to use a trusty used-car price guide and from there determine the deduction when using fair market value. For instance, go online or to a local library to checkout a copy of the Kelley Blue Book. Do a search for the private party prices for your car based on its make, model and current overall condition.

Claiming The Deduction

How to claim tax refund for junk carsReport the amount of your deduction on line 17 of Schedule A. It is important to note that you can only claim a deduction for your car donation if you itemize, the sum of all your eligible expenses on Schedule A should go over the standard deduction amount of your filing status.

Other Forms Necessary

You also need to complete Form 8283 if the car donation is greater than $500. If the deduction is between $501 and $5000, completion of Section A is necessary. If the deduction is bigger than $5000, Section B needs to be completed. Also, you have to get a written appraisal as documentation.

Things To Consider

Take note of exemptions when donating junk carsIf the church sells the car for $500 or less, then you can deduct $500 or the car’s fair market value, whichever is less. For instance, if the vehicle is valued at $650 but is only sold for $350, then the deduction is $500. Also, most charities will also report the sales price of the car to you on Form 1098-C. It is vital that you have proper documentation of your donated junk car from the church. This must include your name, the VIN or vehicle identification number and a statement describing the goods and services you received if any.…

Junk cars are everywhere. They are abandoned on the streets and sitting in driveways taking up space and gathering dust. Junk cars are old or damaged vehicles whose value is lower than the amount of money needed to repair them. Insurance companies label them as junk to be sold off to the local scrapyard. However, junk as they are they are still worth something. If they are still working, a local community can use them or if they are just rusting away, the scrap value can be turned into much needed cash. Why not give back to the community and donate your junk car to your church.

It’s a Junk Vehicle

donating a junk car

If the car already has significant rust damage or does not or barely runs at all, car donation to your local church is the most civic-minded thing you can do. In most cases, you can donate the car in any condition, even if it is non operational. There is also an added benefit of free towing that you get so you do not even have to spend a dime to get rid of it.

Expensive Repairs

Cars as they get older will require more repairs and the older and more wear and tear they get, the more expensive the repairs will be. If you are at a point where it is much more practical to purchase a new one, donating your car to the local church means there is no need to worry anymore on the expensive maintenance. As an additional perk, you also can stop paying insurance on an already unwanted vehicle once you have completed the donation.

It Belonged to a Dead Relative

When a family member passes away, one of the most difficult thing that you need to do is deciding what to do with their personal belongings. Cars are most of the time a sentimental item and when the owner passes away it is a big burden if you are left to maintain and pay insurance on their car. Moreover, there is a lot of confusion because the vehicle title is still in the deceased person’s name. If there is no provision on the will regarding how their personal belongings are to be disposed, donating the car to the church seems to be the most logical choice especially if it is in accordance with the relative’s wishes.

Free up Space

donate your junk car to free up space

Sometimes we hang on to personal belongings too long because they hold a sentimental value in our hearts. We may have a car that we used during college or a gift from a parent or spouse but the problem is that it is no longer working and expensive to repair. Chances are we fool ourselves thinking we can make a special restoration project out of the car but in reality it just sits there taking up precious space in the garage. Donating the car to the church frees us that space and lets us move on.

Not Worth Selling or Trading It

junk cars of dead relatives

If you have tried selling it online and gotten very lowball offers or worse no offers at all, then the best way to dispose it and give back to the community is by donation. Also, trading a vehicle is much worse than trying to sell it. A trade-in rarely will give you the return that you’re hoping for. Donating it to a local church not only allows you a way to get rid of it without cost but it will feel good to knowing that it can help others. Then your church can turn around and sell it to a reputable We Buy Junk Cars site and get much needed cash for the church and it’s programs.

Donating a vehicle to your local church is a worthy activity. The proceeds from its sale will benefit the objectives of the charity that you are looking to support. If the car is still working it might be used by the church as a mobile soup kitchen or for some other worthy cause. Don’t let that junk car idle away in your garage or driveway, donate it to your local church.