The New Loophole in Car Donation

                                                                                         

In recent years, vehicle donation has become a very popular way to write off taxes while helping those less fortunate than yourself. However, charities have seen a drop in car donations recently. Until five years ago, there have been a number of loopholes within the tax system that allowed people to exploit the advantages offered to car donors but now that the government has made exploiting the system much more difficult there has been a drop in the number of car donations received by charities. This does not mean that auto donation is a thing of the past but it does mean that you can now take advantage of some different ways to donate. Unlike previously, you can now donate a car that is much older.

The government has created a very low cut off, meaning that the old wreck sitting in your garage could earn you $500 in tax deduction. Some cunning people have now realized that they can take advantage of this and are donating older, much less valuable cars. This may sound like cheating but remember that the charity will also benefit from this deal. Charities like Goodwill Industries and The American Red Cross are happy to receive donations of any value.

Due to the current financial crisis, there is now a hesitation in people's minds when it comes to giving anything away. If you want to make a donation in this climate, it is a good time to get rid of that old rusty gas guzzling beast that is taking up space on your front lawn. Even if the car is in bad condition and would cost more to fix than it will ever be worth you could still be eligible to receive a $500 tax cut if you donate it to a charity. There is no need to let that old banger rust on your driveway. If you donate it to charity you could receive a $500 tax deduction in return.

About the author:
Are you a philanthropist looking for ways to give back to your community? Visit http://www.charitydispatch.com to learn more about how you can do just that by donating your vehicle for a good cause.

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