Get the Biggest Bang Donating or Selling a Car
| Edmunds.com 07 Dec 2005 15:13 GMT | Page 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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