Sunday, January 18, 2009

Donate Your Car And Save Taxes

By peter henson

You have fallen in love with a brand-new car. The only problem is that you won't have room in your driveway for a new car until you have disposed of your old one. You could place a classified ad and sell it, and deal with calls from buyers and paying for repairs to the car to make it appealing to a new buyer. You could trade it in at the dealership towards your new car, but you know that the dealer will not give you anywhere near what the car is worth. A local charity has been advertising that they will accept your unwanted car, but you are not sure. Donate your car? Are there benefits to giving up the potential profit on your car's sale to a charity?

Hassle Free: Car donation is arguably the simplest way to remove your used car from your home. Most charities will set up an appointment, and then come to your home with a tow truck and simple paperwork. Within a few minutes, you transfer liability and ownership for your car to the charity and it will be on its way to its new home.

Help someone in need. Whether it is an animal shelter, food bank, or some other organization, there is likely a charity that you think highly of. When you donate your vehicle to charity, you get to give a substantial gift to support a cause you believe in. The organization that receives your car can sell it and use the money to fund programs to help those less fortunate.

Financially Beneficial: Donation eliminates the profit made by selling your car, but it can generate greater financial dividends in the long run. Vehicle donation is deductible on your federal taxes, buffeting your potential refund.

Only you can decide the best way to dispose of your used car based on its value, and the time and energy you have to devote to its sale. After considering all the options, you might find that it is in your best interest to donate your car. - 15437

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