Just a few years ago, people used to donate their cars to charity and enjoy tax deductions worth thousands of dollars. This practice was stopped by Congress by passing the American Jobs Creation Act, 2004. As per this act, the deductions enjoyed only on cars donated to charity worth more than $500. If you have a junk vehicle that is not going to give you the desired tax benefit, it is better to check into car donation in Toronto. Here, we bring you some of the best reasons why donating a car to a scrap removal GTA company is a good idea.
- Donate car to charity in whose work you believe in and support whole-heartedly.
- You can also provide your used car for the charity to use. The car, which is no longer any use to you may turn out to be very useful for charities like taking disabled or senior people to doctors, delivering food to poor and needy, and more. Many vocational and community colleges can also make the best use of these vehicles.
- Although the American Jobs Creation Act, 2004 has made rules stricter and process complicated, a deduction can still be had approaching fair market value.
- Charity car donation also reduces the hassle of looking for a good company and selling the car yourself. Donation to charity will also rule out the need for placing an ad in the newspaper, dealing with a deluge of emails and phone calls, showing car to the interested buyers and drive a hard bargain for the best price.
- Charities looking for cars as a donation will pick up and tow them away without charging you anything. At the same time, this cost may be deducted by the charity from the car’s value which in turn can reduce deductions in your tax liabilities.
- If you are saddled with a car that doesn’t have a clear title, it is always better to get rid of it. Such cars usually get sold for its parts or scrap which reduces deduction value. The benefit of giving it away for charity is that it clears your driveway and helps you avoid the hassle of replacing the title.
All these reasons make cars donated to charity a viable idea.