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Get the Biggest Bang Donating or Selling a Car

Edmunds.com   07 Dec 2005 15:13 GMTPage rating:


Do you have an older vehicle that costs too much to repair or just sits in your driveway? Edmunds.com (http://www.edmunds.com) has suggestions for owners looking to get rid of their car, including a way to still deduct full market value for their donated vehicle -- even under the more restrictive Internal Revenue Service (IRS) rules that now apply.

Edmunds.com suggests four different options for consumers looking to dispose of their vehicle:

   1. Donate to a charity that has a 501(c)(3) tax-exempt status
      with the IRS -- For cars valued at more than $500, you can
      deduct the actual selling price that the charity receives for
      reselling your car.

   2. Donate to a charity that uses the car as part of its specific
      mission -- A number of charity organizations will refurbish a
      car for use by the disadvantaged. Donating to one of these
      organizations will allow you to deduct the car using
      Edmunds.com's True Market Value(SM).

   3. Trade it for a new car or sell it to a dealer -- This usually
      does not generate the best price, but owners will get more
      value from their car than what they would get by donating it.

   4. Sell it privately -- Selling privately is the most
      time-consuming of the three options, but will most often be the
      most profitable one.


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