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Author: srinivaasswathi

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Second-Hand “Conscience�

What do you do when your beat-up trailer has run its course? Or, let's say, you've owned a Chevrolet for two years and you're planning to graduate to an SUV? There are many ways you can dispose of an old or used vehicle. While many sell their cars, trucks and trailers as second-hand vehicles where they end up in a second-hand lot, others are nothing more than mere scrap.

But there's another option many are not even aware of â€" disposing of your car while earning some moral brownie points. Have you ever thought of donating your vehicle to charity? In other words, have you stumbled upon car donation? For those who don't read the classifieds closely, there are hundreds of charitable organisations coveting your second-hand car and, believe it or not, the competition is fierce.

But what would a charity or non-profit do with a beat-up roadster or for that matter a trailer who’s travelled more miles than you care to remember? Charities sell or auction second-hand vehicles to raise funds for their activities, and there are a host of sites urging you to donate the following: cars, SUVs, RVs, motorcycles, trailers, trucks, boats and even aircraft!

Save While Donating!

OK, so all you have is an old sedan. But if you're planning to trade it in for something more contemporary, hit the brakes right there. A car donation can prove charitable to your tax returns, in the US, at least. That's because the Internal Revenue Service recognises this act as being eligible for a tax deduction. There are several criteria that need to be met and lots and lots of paperwork to be done. But it might be worth the few hundred dollars Uncle Sam owes you!

Usually, the sum you're allowed to deduct depends on what the charity organisation does with your car. These organisations usually sell the automobile â€" second-hand or new â€" and hence the deduction you claim cannot exceed the sale price.

The sections of the relevant tax laws that govern the deduction vary with the amount you are claiming as deduction. Hence, the documents you are required to file will also vary.

Promoting the concept, non-profit organisations are aggressively advertising this act of charity and they are unabashed to state that they take all kinds of vehicles â€" even aircraft.

Look, No Paperwork!

To sweeten the pill, you are told that all the procedures, including the cost of the pick-up, will be borne by them. Perhaps the most tantalising thing is that you don’t have to go through the hassle of filing all those documents with the Department of Motor Vehicles. 

And while you're in a charitable mood, there's something for the patriotic. The National Veterans Services Fund in the US is also pitching for car donations. Again, donations to the fund earn you a tax write-off while giving you the chance to help all those war veterans who laid their lives on the line foe their country.

A donation like this costs nothing. Once you make up your mind, all you have to do is fill out a form on the non-profit’s website and the charity will contact you. After that, it's a hassle-free process driven by the organisation itself.

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