8 KILLING FACTORS THAT CAN DIMINISH YOUR CAR  VALUE

If you want to retain the resale value of your car, then the thumb rule is to keep your car’s condition as good as possible.  Here are a few things that can cause decline in the resale value of your car:

 01.   MAKE AND MODEL: 

The resale value of the car depends a lot on the make and model.

 02.   AGE AND MILEAGE: 

10,000-15,000 miles on an odometer can lower the resale value of the car.  The miles on an odometer also helps an appraiser determine the age and condition of the car.

 03.   LIMITED EDITION: 

Cars with unusual colors like bright pink, Vegas yellow, Viper green, Glut orange, etc., can not only reduce the resale value but can also give a hard time selling.

 04.   INTERIOR: 

If the car interior has worn out seats, damaged steering, scratches on windscreen, no seat belts, torn ceiling, out of order ceiling light and grubby mats, etc., then these elements can reduce the resale value.

 05.   EXTERIOR: 

The appraiser determines the grade scale of the car by examining the exterior.  Cars with scratches, dings, dents, etc., will be listed as a fair or a poor conditioned car.

 06.   ACCIDENTAL CAR: 

Prior auto collision automatically brings down the resale value.

 07.   NO MAINTINANCE RECORDS: 

If you have not maintained your car’s work record such as maintenance summaries, oil change, tune-ups, receipts of complete engine inspection, battery and changed accessories, etc., then you cannot claim the desired value.

 08.   MODIFICATION: 

Modifications can increase or decrease the value of your car.  Following modifications can diminish your car value:  Fake Engine Sound.  Giant Wings.  Body Kits.  Low profile tires.  Stickers. Tinted Windows.

Link to check your car’s value: 

http://www.kbb.com/car-values/

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Record Keeping and Filing Requirements for Tax Benefits Through Car Donation

Record Keeping and Filing Requirements for Tax Benefits Through Car Donation

Your donated car not only gives the maximum benefit to your desired charity organization, but also helps you get “Tax Deduction.”

As a donor, you need to keep record and file an additional form to substantiate your car donation.

Below you will find the record keeping and filing requirements for tax deduction ranging from less than $250 to greater than $5000.

Tax Deduction of less than $250:

There are only record keeping requirements, which are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.

Tax Deduction Ranging from $250 to $500:

There are only record keeping requirements, which are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.
5. Contemporaneous written acknowledgment from charity.

Tax Deduction Ranging from $500 to $5000:

The record keeping and filing requirements are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.
5. Contemporaneous written acknowledgment from charity.
6. Written acknowledgment.
7. Form 8283, Section A.

Tax Deduction Greater Than $5000:

The record keeping and filing requirements are as follows:

1. Name/Address of Charity.
2. Date of Donation.
3. Place where you donated vehicle.
4. Description of vehicle.
5. Contemporaneous written acknowledgment from charity.
6. Written acknowledgment.
7. Form 8283, Section A.
8. Form 8283, Section B.
9. Written appraisal — if deduction is not limited to gross proceeds.

http://www.irs.gov/pub/irs-pdf/p4303.pdf

Record Keeping and Filing Requirements

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You can download the Form 8283 from following link http://www.irs.gov/pub/irs-pdf/f8283.pdf

Form 8283-Section A

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Form 8283-Section B

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How To Select A Third Party Organization

How To Select A Third Party Organization:

You might find yourself in a fix to handle the whole process of car transaction and provide the money to your desired/selected charity.

In such a circumstance, one thinks of a third party or a middleman who keep their fair percentage of profit from selling the car and providing benefit to the donor (tax deduction benefit) and the charity (money).

There are no set parameters to find a genuine middleman or third party organization, but instead there are few steps whereby you can save yourself from car donation scammers:

1. First and foremost, check whether your vehicle is a qualified vehicle or non-qualified for donation through a guide provided by IRS “http://www.irs.gov/pub/irs-pdf/p4303.pdf “ Page 4 Paragraph 1.
2. Use the link “http://www.kbb.com/ OR http://www.kbb.com/used-cars/” to assess your vehicle’s actual market value in order to get the fair amount.
3. You can Google for a third party and when you are sure that the third party is credible after doing some background checks (you can Google company’s name to look for any news/incidents related to that company), you can ask them for their contact number and address to visit their office.  This will ensure the validity of their organization.
4. Make sure that the third party organization is authorized by the government and ask if they are licensed.
5. Choose the third party that can provide maximum tax deduction for your car donation.
6. Ask third party to provide sales receipt of the vehicle.
7. Avoid third parties who offer vacation or gift certificates. There is a possibility that if you avail a $100 gift certificate or any such in exchange of your car donation, then you may not be entitled to tax deduction.
8. Make sure that the third party organization’s name is clearly mentioned in the title of the donated car.  This will serve as an evidence for IRS to validate the title transfer, which will allow you to get the desired tax deduction.
9. Make sure that you are not charged for the tow truck to tow away your donated vehicle.

Note:  I searched Better Business Bureau and found a listing of a third party car donation service http://www.bbb.org/greater-san-francisco/business-reviews/fund-raising-counselors-and-orgs/car-donation-services-in-martinez-ca-58294

Disclaimer:  I have no affiliation with any organization/company/service whatsoever related to car donation.

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How To Select A Credible Charity Organization

How To Select A Credible Charity Organization:

In order to donate a vehicle, you must have the name of a charity organization to whom you want the money to go to.

The most common type of tax-exempt nonprofit organization falls under category 501(c)(3), such as charitable, educational, or religious organizations.

You can visit http://apps.irs.gov/app/eos/mainSearch.domainSearchChoice=pub78&dispatchMethod=selectSearch

and use the “EO/Exempt Organizations Select Check” tool on the IRS website to verify if an organization is a charity qualified to receive tax-deductible contributions (Not all qualified organizations are listed in EO Select Check (Pub 78 data).

You must have the correct name of a charity organization in order to know the charity’s address (validation check).

Review the charity's financial reports to see how much of its money is used for charitable programs and administrative costs.

Ask the charity organization to make available for public inspection its application for tax exemption, its determination letter, and its most recent annual information returns (Forms 990).

Call and ask the organization if they can directly accept your car as donation.  If not, then we have to select from third party companies (middleman) that can pick the car up from your home, sell it and give the money to your designated charity organization.

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