Are you prepared to donate a car in California? If yes, good for you! Believing and donating in charity is an awesome decision on many levels. Always notice, your donation must be done for a great cause. Plus, you can get your junk or vehicle moved off your property in a hassle free manner. Another advantage is that along with recycling your vehicle, you get a chance to claim the donation as tax deduction. If you are looking for donation, here are some tips on how to donate a vehicle in California along with specific requirements of which you should be aware.
- To donate a vehicle in California, start by submitting the online car donation form and call the charity firm to which you want to donate your vehicle to. There are number of car donation organizations in California but selecting the best among them is a real challenge. For this you can ask unlimited questions to the executive and in case you are not satisfied with the answers feel free to contact some other organization. If you want to claim the donation as tax deduction, ensure to check the details of the organisation. In case of tax deduction the organisation must be an IRS recognized mom-profit organization.
- You should always check with the charity organization to find out what is their procedure for providing the receipt when you tender your vehicle donation. The procedure for getting the tax receipt for the charitable donation may vary. Some charities directly email you the initial receipts while some have the tow truck that is they provide the receipt at the moment of pick up. The initial receipt is not a final receipt, it is just provided to claim for tax deduction.
- Every country has certain rules and regulations. If you do not belong to California but still want to do some charity it is better to be aware of the rules that are made by the government. In California, whenever someone sells a vehicle or donates a car in California, the licence plates should not be removed, it remains with the vehicle.
- The important step that you never wish to miss while donating a car is filing a release of liability with the department of motor vehicle California. You can never predict the future and this document helps you from future liability that may arise for any reason after you have donated the vehicle. In the state of California the procedure for filing this release of liability is that you have to return the DMV form REG 138 or pink portion of the title to the local department of vehicle in California. You can also file the release of liability online.
- If your vehicle qualifies for a great market value tax deduction or it sells for more than 500$, you have to manage with additional paperwork related to tax after your vehicle sale takes place. The money you will be permitted to deduct on your tax will depend on various factors that include the price of the vehicle sold or the vehicle is categorised as fair market value donation.
- The last point that is noteworthy is that if you are planning to claim for car donation tax rebate on your 2019 taxes, in that case, it is mandatory that you donate your vehicle before the deadline of 31 December, 2019. Thus, in order to claim the tax deduction in 2019, the charity must have the possession of the vehicle before the midnight of 31st December or should have the pickup in the work. In case you have mind your mind to go for donation, don’t wait till the last second as there can be delays due to any reason and can result you being unable to claim for the donation for the current tax year.
In case you have any further questions in your mind related to your car donation in California, feel free to contact Last Day store. Although most of the charities are knowledgeable about the paperwork and other necessary details, however, you must directly contact the accountant or CPA for precise specifications regarding your tax situations. For further queries you can contact the local DMV or visit the official website for state specific requirements and other latest information.