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Tax Benefits of Donating a Vehicle

There is a point in everyone’s daily lives where they need to get from point A to Point B. However, what happens if you don’t have a vehicle or the funds to use public transportation? Do you attempt to rely on a friend, family member or just not go after all?

While the economy continues to rebuild itself and provide more jobs, most people still don’t have the financial means to purchase a reliable vehicle. On the opposite end, for those people who thankfully were able to survive the economy downturn, what do you do with that car you just don’t need or want anymore?

Here’s a solution: consider donating your vehicle to a non-profit organization that provides vehicles to families in need. ATI has a wonderful program dedicated to helping struggling families in Minneapolis by providing them with a safe and dependable vehicle. This is through the Car Donation Program.

For donating a vehicle, donors can receive a substantial tax deduction based upon a few factors: the vehicle’s fair market value, what the organization plans to use the vehicle for and if selling, at what price. Some organizations working with agencies provide vehicles to families at no cost.

The IRS has various guidelines for tax deductions on vehicle donating. Either you can receive the typical $500.00 automatic break, or if the organization plans to use the vehicle for their purposes, you can deduct the total fair market value. In addition, if the organization sells the vehicle at a price well below the fair market value, you have a good chance of deducting close to or the entire amount of the original value.

Either way, you will see a tax break as well as feel those “Good Samaritan” vibes knowing you helped someone in dire need. It’s difficult to say exactly what your deduction amount will be as it’s based upon various scenarios and the non-profit organization you decide to donate to. Auto Technical Inc. is passionate about the services they provide and making sure donors get rewarded for their good deed. For more in-depth information about donor tax deductions, contact ATI today.

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