I need money – Should I sell my old car or donate it
A reader asks…
Look at this from the self-interest prespective not from being charitable. I am in need of money right now for personal reasons, so I am not asking this based on moral guideline. I want to know what makes more financial sense to me. If I give the car to non-profit, how do they value the car? How much tax credit do I get? I want to make the most money with the car, and please tell me the best way to get the most money.
See answer(s) below…
3 Responses to “I need money – Should I sell my old car or donate it”
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As I recall, donating something to get tax deductions only benefits you if you itemize your deductions, rather than take a standard deduction. So, if you prefer not to bother with itemizing, it probably won’t help; or, if you plan to itemize, you want to be sure you’ll have enough deductible items documented that the total would be more than the standard deduction value, or you’ve done all that documenting work for nothing.
Selling the car will give you cash in your hand right now. Donating it will mean less tax paid on your next return, "IF" you itemize deductions, which you can’t even do unless you donate above a certain amount. I would opt for selling unless the car is in such bad shape that you would have a lot of difficulty selling it.
If you need money now, then sell the car now. Like the previous answers state, you’ll only get a tax deduction if you itemize and that won’t come until you can file your taxes at the end of the tax year. That hardly puts money in your pocket now.
If you don’t have the time to put an ad in the paper and then deal with all the phone calls and people coming to your house, then you can sell your old car fast just by filling out a form online. It’s a free service. You’ll get bids on your car from old car dealers in your area and you’re under no obligation to accept any of them. If you do accept a bid, you car will be towed away for free. Just click that link to get started.