Donate Your Wrecked Junk Car

Get Your Car’s Fair Market Value and Tax Deductions By Sending Your Junk Car to Nonprofit Organizations

Disposing junk cars can be quite a dilemma. Cars that are no longer working can take up too much space in the garage and will just rust in the long run. Finding a company that offers junk car removal can be quite difficult and a bit pricey especially if the company is not located within the neighborhood.

Another great option for junk car owners is donation to nonprofit organizations. When car owners donate wrecked junk car, there are several things that must be reviewed to ensure that the donation is given to the right organizations and additional tax privileges can be acquired.

When a car owner decides to donate wrecked junk car, reading articles about car donation can greatly help in determining the right organization and in obtaining the possible benefits of such donation. Car owners must look for nonprofit organizations that are registered under the IRS to ensure the organization’s eligibility and qualifications. Donating junk cars to charitable institutions that are not registered under the IRS might not give car owners the right to tax deductions.

The IRS maintains a website that contains a list of registered charitable institutions, specifically published in Publication 78. Car owners can also opt to call the IRS Tax Exempt/Government Entities Customer Service for quick inquiries about the qualifications of a specific charitable institution.

Donate Wrecked Junk CarOnce an IRS registered nonprofit organization is chosen, car owners can proceed to the calculation of tax deductions. Some junk car owners skip this part and just donate the wrecked junk car right away to charity because they want to get rid of the car or in some cases, to give the nonprofit organizations the opportunity to make use of the junk car. But for interested car owners, it is important to prepare the itemized deductions on the personal tax returns and avoid using the standard deductions. Just like when a junk car is being sold, it is important to verify the overall condition of the car and its current value before donating to charity. The value of the wrecked vehicle determines the fair market value that can be claimed by the car owner.

Low value vehicles are those that fall below the $500 fair market value. Junk cars with a fair market value of more than $500 entitle owners to higher deductions. Junk cars that are still in their working condition can give car owners the opportunity to claim their car’s fair market value through a receipt of exception.

Junk cars can still serve a great number of purposes for nonprofit organizations. Instead of letting the wrecked car sit in the garage, rust over time and be completely useless, donating it to charity can give others the opportunity to restore the car and use it. At the same time, car owners who donate wrecked junk car can get deductions and a free junk car removal service because most nonprofit organizations accepting junk cars provide such service. Always make sure that the junk car has a title and the charity is accepting all types of automobiles.

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