| Donate Your Vehicle To Charity
Are you thinking about disposing of your old vehicle? If so, you have three choices: trade it in on a new vehicle, sell it, or give it away. For many people the third choice is the best. Why? Because they can reduce their Federal and State income taxes by getting a charitable deduction. Here's how it works.
Let's assume that you have a 1990 DINKLEMOBILE. It needs some engine and transmission work, new tires, and the brakes must be replaced within the year. Your mechanic tells you that the cost will be around $3,000. You decide that it's time to get a new DINKLEMOBILE.
Choice #1 - Trade-in: The dealer offers you $1,000 toward the purchase of your new DINKLEMOBILE.
Choice #2 - Sell it yourself: This isn't very appealing to you because it means that you must first spend some money to clean it up and make it more presentable. In addition, you have the cost of advertising. Then you have to deal with the potential buyers, all of who will offer you less than the $3,000 you're asking for. The Blue Book value is $4,000, but there are those "minor" repairs needed, which drastically reduces it's sales value.
Choice #3 - Give it away to charity: The IRS permits you to take the Blue Book value as a deduction. If you are in the 28% tax bracket, the charitable deduction will reduce your Federal income tax by $1,120 and your State income tax by about $300. Your total tax savings will be $1,420 - and you're helping a charity at the same time. This is a real WIN-WIN situation.
So when is it beneficial for you to consider giving the vehicle away? That depends on a number of factors. The first thing you need to know is the value of the vehicle. That will help you to determine what you can expect to get for a trade-in or a likely asking price if you plan to sell it.
We have included a link below that will take you to a web site that provides you with this essential information. Armed with this information, you can decide how you want to part with your DINKLEMOBILE.
Used Car Values | 
