Considering to Donate Your Car In Massachusetts – If you are living in Massachusetts and considering to donate your car, there may be many factors that hold you back, and you may ask your self “is it worth it?” This question might be common for people who are considering to donate their cars either for charity or in exchange for money.
Believe it or not donating your car is a better way than selling them only if you are looking for an alternative way to get rid of your car fast and earn some quick bucks, just imagine how much time it will take to sell your car to strangers, and there is a high chance they will ask you to lower the price which make you frustrated right? This is why donating is a good investment, it does not just make you feel good, but many people will receive the benefits from your car too. Other than quick cash, you may also get several benefits like:
- Tax deduction
Donating your car can give you a tax deduction if you include it in your charitable contribution deduction, although how much tax deduction you get is mostly determined on the condition and model year of your car has to the marketplace.
- Vacation package
Some charities might offer you vacation package as an incentive of your donation, but remember it can also affect your tax deduction by subtracting the value of the marketplace from the car donation.
As you can see there are many benefits you could get by simply donating your car to the charity, but every state has its rule, the same thing goes for the state of Massachusetts, the process itself is relatively simple and easy. To get the best donation offer, just follow these seven easy yet essential steps that can make your junks disappear for the greater good.
- Choose a charity organization
There are many charity organization on-online or off-line that offering to take you car, doesn’t matter if it is from local to national organization, but the most important thing when it comes to donating a car in Massachusetts is to determine if the organization is for non-profitable or not. Hold on why is this so important? It is important because if you want to get the car donation included as your charitable contribution deduction, the charity must be non-profitable and listed as 501 (c) (4) organization that would be able to report the donation to the IRS since they don’t make any sort of income anyway, but if you go for the profitable organization then the organization probably just sell the car for profit and not listed as free-tax organization. Now you may want to consider these non-profit organizations in Massachusetts like Make-A-Wish Car Donation, MAB community, AfforKids Donating a car, and Charity car inc. If you haven’t sure if the organization is non-profitable or not, then you might want to use this tool to help you out https://www.irs.gov/charities-non-profits/exempt-organizations-select-check.
- Obtain the title
Without the title you can’t donate your car, so how do you obtain the title? Once you find your non-profitable organization, then you need to provide them with detail information about your car. The organization requires you to do this so they can register your car as a legitimate donation for a future auction. Here is the information you should provide to the charity organization:
- Car model
- Car body type
- Certificate of Vehicle Number (CVN)
- Current mileage
- Date last driven
- Date of car purchase
- Fill out the title
Once you have the title you need to complete any requirement, keep in mind the rules may vary in each state, but in the state of Massachusetts, the state doesn’t require you to provide a certificate of title to transfer ownership of vehicle since the law was introduced back in 1980. First, you need to sign the title as a seller, then fill out the name of the agency that will pick up your car for the charity, for example, the Advanced Remarketing service goes on the title. On top of that, you have to know the title must be signed by all parties, no liens should be listed unless it is signed with accompanying document and watch out for writing error since this is an official document the IRS won’t consider your donation seriously if there is any writing mistake.
- Schedule for the pick-up
After you send the title to the charity organization and the donation is accepted, you will be contacted by their towing agency to pick up your car (depending on your towing agency it might take two or three days for the agency to call you). So you better schedule a convenient time for your car pick-up.
- Determine the value of the car
Now you need to determine how much value your car has to the marketplace because depending on the value of your car, you might be required to fill out a form. For example, if your car is worth more than $5000 then you need to fill out sections A and B of IRS form 8283 for your tax deduction, if your car worth between $500 to $5000 then you need to fill out the section A only, however if your car worth less than $500 you only need to fill out a receipt from the charity for your tax return.
- Decide for tax deduction
Now you know how much value your car has, so it is time for you to know what the charity did to your donated car and decide the right amount of tax deduction you should get. But how do you do this? Based on the value of your car has to the marketplace, the deductible may vary for example:
- Presume that your car sold out for $5000 at auction, then your tax deduction would be limited to $5000.
- If the charity sold out for less than $5000, then you can only claim the amount sold.
- However, if the charity uses the car for their interests, then you can claim the fair market value of the car.
- Wait for the charity to send you further notification
Once you have donated the car, you need to wait for the charity to send you a mail notification that your car has been successfully donated to those who need it. Now you can get the tax deduction and holiday package for your generous donation that has help the community out there for the greater good.