Car Donation Myths

The production car donation business is very profitable, and profits than it is true the large advertising budget, but also a lot of hype that only tangentially. Before arriving here from all the varied dazzling display copies are just some of the realities of car donations.

Myth number one: your car will go to a needy person.

Very few cars actually end up being sold donated to needy persons. Most of them - about 90% -at the end of the auction houses, where they are auctioned to the highest bidder stopped. The auction price is usually lower than the Kelley Blue Book value of the car, and sometimes less than half of its book value. What's more, the auctioneer is a section of the proceeds of the sale, sometimes more than half, and then what love actually receives as a result of your car donation to a very small fraction of the real value of your own.

There are some charities thatactually be cars, people and other charitable organizations, donated the cars to take on a case by case basis we can to help their programs, but are harder to find, and one must be careful that the fee and document processing in transferred to the track. This is because such charities as well acquainted as the great car donation car donation processor. This does not mean they do not know what they do, just not as often or is in the same order as the car donation processing large houses do. But when you're ready, you can charitable organizations, whether your car or find a needy person for him. In these cases you will receive a tax deduction would be much greater if the car was sold at an auction, because if you can only get a proportionate amount of that fact, the love, not the value of the car . But if a charity uses theCars> or anyone who needs it, then you can ride to deduct the entire market "fair value" of.

Myth number two: Your donation will help drive the road in a large charity.

While your car donation charity that helps for sure, if you really wanted to help them, it would be better if you sold the car and gave them the proceeds of the sale. Again, this is because most of the cars are donated and sold at auctionand auction prices are much lower than it would be to organize a private buyer and the seller.

Myth number three: You can get a huge tax deduction for your car donation.

The days of tax breaks for cars donated mass are over. This ended when the IRS laws for car donation changed again in 2005. The average income tax deduction from a car donation of $ 500. This is because most cars are sold at auction, but also because most cars donatedare not very useful to begin with. If your car is worth more than $ 500, or has been sold at auction more than $ 500, you can still get a tax deduction bigger, but you have filled out more paperwork and you might want to have the machine do the court to make a donation, and evaluated by an expert approved IRS. You want to make this car in a situation where you were giving a very expensive, maybe if you were an antique carCollectors who wanted to thin out their collection.

As mentioned before, if you can find tax relief is a charity, or the car itself, will give your car to a needy person, or significantly improve on your first card, which they sell, more will seek to agreement. But do not expect not to pay your gift tax liability. It can be inferred as Kelley Blue Book or "market value" of your car, but nothing more.