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2008 Year End – Should You Donate your Old Jalopy?

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You may have simply had it with your old car and the repairs are costing more than you’d like. (Hopefully you’ve checked the RepairPal Price Estimator). If that’s the case, you may want to consider donating your car to a charity.  And…with 2009 rapidly approaching, you may need a tax write-off for 2008.

There are two big things to consider when donating your car:
1.    Is it a charity?  Make sure it’s a group you care about  - many organizations will take car ‘donations’, but is it truly a charity?  Is it a group that simply resells to a 3rd party?  Make sure the folks you want to help really will benefit.
2.    Is it tax-deductible?  You should check to ensure the charity is a 501(c)(3) and verify if the charity is eligible to receive donations at the IRS website.  If the donation value is more than $500, you’ll need to fill out Form 8283 with your IRS tax return.

And don’t forget, you’ll need to transfer the title of the car to the charity (you’ll want to take pictures and keep a written record of this).  Voila – you’re done!

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