? Charities to Whom You May Donate Automobile Parts and Broken Autos
Since the revamping of the laws regarding vehicle donation, automobiles that are not running have been donated at a somewhat lower rate than they were just a few years ago, but that doesn’t mean you’re stuck with that jalopy. You can still donate it to charity even if the tax deduction benefit has been slashed dramatically.
Generally when you donate an automobile that doesn’t run, it will be towed away and sold essentially as a parts car. Though most donated automobiles in such condition are dealt with by a third-party (usually a for-profit company) agent rather than the charity itself, you can still get the old hulk hauled away.
However, you should be aware that the deduction value you may claim for a car sold on the wholesale market is greatly limited by the fractional amount it is likely to be sold for as well as the overhead fees that are taken off the top by a third-party agent, the remaining value that is actually given to the charity from the sale of the donated automobile is the extent of what can be written off under the new laws.
Generally, the highest values for donated automobiles are reserved for cars and trucks that are still running, some agencies will accept some broken down cars and trucks for repair. If you can find a school or church that has an ongoing mission of automotive training, even a non-functional auto has the potential to be deducted at the higher “fair market value” in such cases.
When you donate an automobile to a charity or non-profit organization recognized by the IRS as a charitable organization, it won’t be your job to part it out and sell the pieces. Someone will do that for you after they purchase the whole thing, parts and all. On the other hand, if you don’t have all the parts anymore, as long as it still looks something like a whole automobile, you’ll be able to give it away as such. No one is going to be counting each and every bolt to make sure it’s still there, nor do you have to sign any sort of affidavit that your donated automobile is repairable.
So, reagardless of how profoundly it’s not running, donated automobiles are still accepted by a wide range of charitable organizations. Often, they will be larger or national charities that don’t have a specific mission involving getting running cars to people. Unless there’s something particularly cool or somehow unique about your donated automobile that would make it a good project car, you can assume that it will be sold for scrap or parts at a wholesale auction.
If the donated automobile is special, you might want to shop around and find someone who will take the time to put it back into working order. Schools that teach shop classes and other non-profits with an educational mission are the most likely to want to put the time and effort into getting your mangled ’65 Thunderbird into saleable condition. Though it could take some looking on your part, there are charities available who will come and pick such a donated automobile away.
This approach has the added advantage of providing you with the opportunity for a higher resale and thus, tax deductible value. Of course, it will take a little longer, and you may end up waiting a few months before you finally get the paperwork declaring what your donated automobile was sold for – or the use it was finally put to – within 30 days of the final sale or determination.
Donated automobiles, regardless of how long it takes them to actually find their ultimate end, will be given a receipt of intent when they’re picked up. This means that even if it takes awhile for the donated automobile to become a running machine again, you have the ability to go ahead and file your taxes for the year in which the donation process was initiated.
Despite changes to the law, there are still plenty of places that accept donated automobile that are no longer running. The only thing you need to consider is whether or not it has potential to be fixed up for sale as a running machine.
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Auto Diesel/26_donate automobile.txt