Are you considering making a tax-deductible car donation? If so, you’ve got several situational components you must consider.
For instance, you must assess legitimate car donation charities. After all, some supposedly charitable organizations aren’t reliable, or their values don’t align with yours. You want peace of mind knowing your generous gesture benefits a great cause.
Factors such as logistics, transportation, and how to properly donate your car to receive your tax deduction also come into play.
Below, we’ll detail everything you need to know about making a tax-deductible car donation.
Choosing From a Wide Range Of Legitimate Car Donation Charities
Research is crucial to finding legitimate charities for your tax-deductible car donation.
However, figuring out the best place to donate can be difficult. The internet is a vast information highway. You can feel weighed down by the abundant options.
So, how do you sort the wheat from the chaff, so to speak? What separates a cause you can get behind and believe in from one that doesn’t quite hit home? These are challenging questions since charity is innately good, and choosing one from the other can seem like a guessing game.
We suggest first thinking about what you’re donating. In this case, it’s your car. Therefore, it would make sense to be more specific instead of broad and work with legitimate car donation charities in the automotive sector.
For example, say you’re a resident of Hampton Roads (or in the surrounding communities) in Virginia and want to donate your car or truck to a more local cause. Eggleston is an easy and rewarding way to make the most of a vehicle you don’t need anymore.
Why Choose Eggleston To Donate Car For Tax Deduction?
Keeping local and specific with your donation–and choosing Eggleston–is often more manageable than other, more generalized charities.
By staying local, you often don’t need to deal with outside agencies that make the process less impactful to the community. Thus, no commission or percentages are doled out. Instead, your donation goes directly to the cause – Eggleston.
Additionally, the vehicle is auctioned locally, ensuring that local bidders benefit. Every dollar yielded from the eventual sale helps fulfill Eggleston’s long standing mission.
Who Are You Helping With Your Car Donation To Eggleston?
When you donate your car to Eggleston, we’ll accept it, whether running or non-operable.
From there, people with disabilities in our community benefit from jobs repairing, detailing, and preparing their vehicles for auction.
This process offers these hard-working, eager individuals additional job experience and hands-on education they otherwise wouldn’t receive. Moreover, they’ll develop the necessary collaborative and people skills to improve workplace relationships and customer interactions.
Helping develop our team means you’re contributing significantly to the local workforce. The knowledge and experience our team members gain from your donated vehicle could be a jumping-off point to a successful, long-lasting career that previously wasn’t possible.
How Much Tax Credit Do You Get For Donating A Car?
Upon selling your vehicle, your donation amount depends on the selling price.
If somebody buys your former car or truck for over $500 at one of Eggleston’s local auctions, you can deduct 100% of the selling price.
Conversely, if your vehicle sells for $500 or lower, the “fair market value” gets deducted up to $500.
How Do You Claim Your Tax Credit? Is There Any Paperwork?
There is paperwork required to ensure your car donation is–in fact–tax deductible.
Note that your total itemized deductions must exceed the standard deduction that aligns with your filing status. Furthermore, be mindful that itemized deductions include home mortgage interest, state/local taxes, out-of-pocket medical expenses, charitable deductions, etc.
Consider speaking with your tax advisor before donating to see if itemizing makes sense.
When an Eggleston tow driver picks up your car, they’ll leave you a “Thank You” card, and you will receive a “Thank You” letter in the mail. Once the vehicle is sold, we’ll issue a settlement letter. We’ll also ensure you receive an IRS 1098c form before January 31st of the following year to confirm the sale price and date.
To learn more about this process, examine IRS Publication 4303, a vehicle donor guide. Eggleston has provided this blog for guidance and it is the responsibility of each person that donates; to determine the appropriate steps for submitting to the IRS.
How Do You Hand Over Your Donated Vehicle?
Is your soon-to-be donated vehicle inoperable? If so, Eggleston will schedule a tow with you if you’re from Hampton Roads and outlying communities.
You can also drop your donated vehicle off at our Auto Center at 3525 N. Military Highway, Norfolk, VA, 23518.
Determine eligibility by giving us a call at 757-963-8393.
Do You Need Lots Of Paperwork To Make A Car Or Truck Donation?
While receiving your tax deduction of up to $500 does require a little bit of paperwork, the act of making a donation is considerably more straightforward. To that point, you only need a valid title for your car or truck.
If you’re missing a valid car title, you may need to ensure you’ve paid off the entirety of your car loan, or you can request a duplicate title from the DMV.
This requirement isn’t complex, but it is ironclad. We cannot accept a car donation without the car title due to the various legal issues it would raise.
Your Car Donation Will Go Far With Eggleston
Eggleston is proud of our car donation program. We’re dedicated to helping people with disabilities in our community develop necessary life skills that help them thrive and flourish.
Beyond the feel-good benefits of knowing you’re doing the right thing, you don’t need to go through the hassle of selling your car after donating it to us. Whether your vehicle is barely functioning, not functioning at all, or just in the way, we’ll take it off your hands and auction it off–simple as that.