How to Get $5000 Tax Rebate If You Donate Your Car?
People might think why on earth one need to donate one’s car; but the reasons could be plenty and car donation is now the next best charity and many people seem to give their vote for it making it popular not only in the United States but elsewhere in other developed countries as well. However, car donation to charitable organizations is simply not on humanitarian grounds, there are associated benefits with it that people love.
Although donating a car to charitable organization is a means to helping the poor and the needy, yet by doing so the individual can enjoy significant amount of tax benefits which is the most attractive thing here. Again, your vehicle might be in utter bad shape and is of no use to you but donating your car to any of the charitable organizations which could be of some worth to them.
Why not sell your car?
Selling a car is always a pain. It is not only time consuming but also involves additional cost. If you wish to sell your car you need to give a makeover to it which implies you need to invest something, so that you get the best price. Second, you need to bear with the cost of putting up an advertisement in any of the media. You need to run around car dealers and convince people about your car on various test drives that would be taken by parties before they buy the car.
So is that headache all worth? Instead why not donate your car to some organization and end up saving time at least?
Benefits of donating car
Car donation attracts tax benefit in the following year to the donor if the charitable organization is registered under 501(c) 3. The amount of tax refund is on the sale value of the car. Once you will up the car donation application form you become eligible for the IRS tax rebate and you receive a receipt of minimum $500. The charitable organizations will assess the market value of the car depending upon its running condition. If your car needs any repair then that amount will be deducted from the amount of tax rebate that you will receive on car donation.
Donating your car to a charitable organization is a simple and easy process. You simply need to call the listed numbers of the charitable organizations and they would take care of the rest. You need not worry on paper work, repairs or even money. Suppose your car is worth $5000, you are entitled for a charitable deduction of $5000 from your income for tax purposes. However, if the value of your car is more than $5000, then you need to fill up 8283 form along with 1040 form and officially written form of car valuation attested by highest concerned officials.
So if you are thinking of selling your old car think from your heart and feel the fact that a vehicle which is either junk or old-fashioned for you can be treated like golden chariot by others who are in need of it. Why not make a conscious decision and get going with your donation of car to a charitable organization.