Nonprofit organizations, recognizing the cash-strapped times, have recently started offering an alternative as a tax-deductible donation to their cause: giving them an old car.
Sometimes public radio stations will offer a pick up service and allow supporters to donate a car or boat as a donation to the station. Groups like Boat Angel allow you to make tax deductions by giving them your boat of any size or make. Many of these donations happen at the end of the year so that the donation counts toward that year’s income tax cycle.
It is important to remember to change your insurance policy after the donation. If someone gives away an old car or an old boat, the insurance company can adjust the policy so that the old vehicle is no longer being covered.
“Donating an old car or vehicle is good for you twice,” said Lee Rogers of the Florida Insurance Group. “You get the tax deduction from the donation and you most likely will get a reduction in your insurance policy, too.”
In many cases, the boats, personal watercraft and cars are disassembled for parts, but in some cases, the vehicles are rehabilitated and sold.
“You want to get the car or boat off of your insurance policy as soon as possible after the transaction not only because it will likely save you money, but also because it removes you from being liable for the vehicle,” Rogers said.
The policy can be altered on the same day as the donation if possible, he said.
To learn more, call 1.888.525.2210 or visit http://www.floridainsurance.com.