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Deducting a Car Donation in Florida From Your Taxes

What should you do with an unwanted vehicle? Maybe it's just time for a change, or maybe an uncle left you a gift that rolled off the factory line in 1976. Whatever the reason, if you have an old car and don't know what do with it, you can donate the car to a number of charities. Forego the headache of finding a buyer, donate the vehicle instead and use it on your next tax filing.

Before you do, there are a few things to consider.

  • A large majority of charities will accept automobiles as donations. Find one that involves itself in activities that you support, whether it is for children, pets, the homeless or veterans.
  • When you do donate, make you sure get a receipt or record of the transaction. You cannot attempt to deduct the donation from your taxes if you do not have proper proof. Staying organized will pay off in the end.
  • You will need to provide and transfer the title of ownership over to the charity. Make sure that you have the certified title. If not, you can request a new one here.
  • It is always recommended that you consult a tax professional when possible. Accountants are knowledgeable of the tax code, and understand more ways to make your donation work for you.
  • You cannot receive anything in exchange for your charitable donation. If you receive any money, goods or services from the 501(c)(3), it will disqualify this as a charity.

When you donate a vehicle, the charity will sell it and use the profits to fund their activities. Document your donation, and you can claim this on your taxes the following year. Do some homework and speak to an accountant to find out the best tax filing option for you. Depending on the value of the car and amount of deductions you are claiming, you can use the fair-market value of the car instead of the selling price (whichever is higher). If donating is not the way to go, you can also give a case donation.