Here are some tips for those of you that are thinking about making a Dallas car donation.
Dallas Car Donation Tips
1. Choosing a Charity
Many different charities accept a Dallas car donation. It is often an excellent plan to choose a local charity because of transportation issues.
Just check carefully that the body is stated as a tax-exempt 501 (c) (3) fund or a religious organization if you want to use your gift as a tax deduction.
2. What You Can Donate?
Cars and light trucks of all kinds are accepted by most organizations, even if the vehicle is not running. Also, broken down vehicles can be sold at auction for parts.
A wrecked car might not be acceptable. Check with the charity to be sure. Other items, such as planes and boats, are accepted by some, but not all, organizations.
3. Getting the Vehicle to the Charity
Some groups offer free towing for your Dallas car donation because they make a lot of money from selling the items.
If the vehicle is drivable and the charity must pay the towing expenses, you can save the organization some money by driving it to a drop-off point.
4. Gathering the Paperwork
The paperwork required for making a Dallas car donation is similar to that needed when buying or selling a vehicle.
You will need to get the title transferred from your name to the charity’s name. The charities usually pay the transfer fees.
Upon making your Dallas car donation, you will want to have the vehicle removed from your insurance policy, effective on the date of pick up, and remove the tags.
You may additionally require to communicate county tax collector if you live in an area where personal property taxes are charged on vehicles.
Some states require or suggest that you fill out a “Notice of Sale for Used Cars” form.
It also absolves you of any tax obligation beginning when you make your Dallas car donation.
5. Getting the Tax Deduction
If a Dallas car donation is valued at less than $500, it is pretty easy to get the deduction. You just need to itemize. If you do not currently itemize, check with your tax advisor.
If the vehicle’s value is between $500 and $5000, additional paperwork is required. There are IRS publications that cover the subject altogether.
6. Items Worth More Than $5000
Anytime you donate an item to a charity worth more than $5000, you must have an independent appraisal conducted first.
The appraisal requires an adequate appraiser, a maximum of 60 days before the Dallas car donation. This is an IRS requirement.
7. Determining the Value, Without an Appraisal
If your vehicle’s value is less than $5000, you can use a Kelley Blue Book or a similar guide to come up with the FMV of your Dallas car donation. You can even do it online.
Ensure that you look at the value for the make, model, year, and vehicle condition. Otherwise, the IRS might question the deduction.