For your benefit we have collected a number of common questions and answers regarding car donations. Question: I want to donate my car, but I'm afraid of incurring more taxes for doing so? Answer: On the contrary, donors will automatically qualify for a tax reduction, the moment a car donation is officially completed. And the process is relatively easy. The only firm requirement is for the title or ownership of the vehicle to be present, for most States. In cases of lost title, the donor can apply for a replacement with the Motor Vehicle Department in your area.

And there are cases that donations are allowed sans the title, as long as the certain forms are filled in. The tax deduction for your car donation was made possible under the American Jobs Creation Act of 2004. Question: I really want to donate my car, but will this be accepted? Answer: Normally there is nothing that's not accepted by car donation services. Usually there is ready for shipment to targeted beneficiary organizations boats (yes boats, any means of transportation), cars, trucks, vans, fleet vehicles, trailers, motorcycles, and even RV's. But to save all parties from trouble, a requirement usually is that your car donation should not incur additional cost other than the necessary.

A car will be accepted even if it's not running anymore, as long as it can be repaired. Question: If I donate my car, how is the tax deduction amount determined? The tax deduction will be based on the actual sale price of your car. Vehicles that sell for over $500 entitle you to a deduction equal to the sale price. For most cases, the minimum tax deduction for any car is $500. We can assist you in determining the market value of your car, if you say so.

It should also be clear that to qualify for the deduction, you must not receive in exchange for your car, any goods from us or from the nonprofit organization of your choice. Question: I'm having few doubts, on what would happened if I finally donate my car, will it not be used for profit purposes? Answer: Your car, or whatever vehicle, is usually sold at auction. But this is just for the purpose of transforming your favorite car into a more usable item. Some of our beneficiaries may not need a car, but cash for their non-profit work of service. They may be engaged in environmental works in which equipments, other than vehicles, are most needed.

Transforming your car into cash will facilitate this need faster. And even if you have a charity or nonprofit organization of your choice, most car donation services will facilitate the transfer of your car to them. In case that the auction of your car will yield greater value, and naturally be chosen, the charity of your choice will receive the greater part of the proceed. They will not even need to do anything because will process all needed documentation or the auction, and the delivery the proceed.

Isabel Baldry is a freelance writer who writes passionately about a number of subjects. Learn more about how to donate my car here.