March 20

How to Gift Your Old Vehicle

3698  comments

a man in a blue dress shirt filling out paperworkUpgrading your vehicle is exciting, especially when you get an upgrade in features and the vehicle has that new car smell. But what should you do with your old vehicle? You may decide to designate your old vehicle as a car for your newly licensed teenager, but you can also gift your vehicle to a friend or donate it to a local charity. If you’re interested in donating your vehicle, learn how to go about doing it and things you should look out for in the process.

Owner of the Vehicle

To be eligible to donate a vehicle, you have to be the owner of the vehicle. This information is particularly important if the vehicle has a loan on it, which means the lender is the owner of the vehicle until you’ve paid off the loan. Therefore, you’ll have to pay off the loan before you can donate the vehicle. This also means you can’t give away your mom’s car since the title would be in her name.

Gifting Your Vehicle to a Friend

It’s a fairly simple process to gift your vehicle to a friend. Be sure to check your state’s rules before starting the gifting process, but essentially you sign over the title to your friend and then contact the Department of Motor Vehicles to release your liability on the vehicle. Your friend is then responsible for registering the vehicle and getting the title issued under their name. If your vehicle is worth more than $12,000, you may be charged a gift tax.
If you still have a loan on the vehicle, you’ll need to transfer the equity of the vehicle to your friend, who will then have the responsibility of paying off the loan.

Donating Your Vehicle to a Charity

The process for donating your vehicle is a little different than simply gifting your car. First, find a charity or nonprofit organization you’d like to donate to. Then, make sure the organization is able to handle a car donation. In general, if the nonprofit is registered as a 501(c)(3), they should be able to take your car as a donation.
While a middleman company can help you donate your car, your chosen nonprofit organization will receive more if you work directly with the organization. You should receive a receipt from the organization right after making your donation, and you may also receive a 1098-C form in the mail.

Claiming a Tax Deduction

If you plan to itemize your tax deductions, the most you can claim as a deduction from your donation is the fair market value of the vehicle. Depending on the value of your vehicle and what the organization does with your donation, you may need to provide the 1098-C form the nonprofit sent you and a written appraisal if the charity does not plan to sell the vehicle. In general, if you deduct $500 or less for your car donation, you won’t need to provide documentation, but be sure to hang on to that receipt.
The process for gifting or donating your vehicle is quite simple. Plus, it’s a great way to free up your lot and help someone else in need.
 
Image via Pixabay | CC 0 | Cropped from original


Tags


You may also like

Fall Date Ideas in Lewisville, TX

Fall Date Ideas in Lewisville, TX
Leave a Reply

Your email address will not be published. Required fields are marked

  1. With havin so much written content do you
    ever run into any problems of plagorism or copyright infringement?
    My website has a lot of completely unique content I’ve either created myself or outsourced but it seems a lot
    of it is popping it up all over the internet without my authorization.
    Do you know any methods to help stop content from being stolen? I’d truly appreciate it.

  2. Hey! I realize this is sort of off-topic but I had to ask.
    Does operating a well-established website like yours take a large amount of work?

    I’m brand new to blogging but I do write in my diary daily.
    I’d like to start a blog so I can share my own experience and
    thoughts online. Please let me know if you have any kind of recommendations or tips
    for brand new aspiring bloggers. Thankyou!

  3. I really love your site.. Excellent colors & theme.

    Did you create this website yourself? Please reply back as I’m trying to create my very own blog and would love to find out where
    you got this from or exactly what the theme is named.
    Appreciate it!

  4. you are really a just right webmaster. The web site
    loading pace is incredible. It sort of feels that you are doing any
    unique trick. In addition, The contents are masterpiece. you have performed a great task in this matter!

  5. What i don’t realize is if truth be told how you’re no longer actually
    a lot more well-appreciated than you might be
    now. You are very intelligent. You understand therefore significantly in terms
    of this matter, made me individually imagine it from numerous numerous angles.
    Its like men and women are not involved until it’s one thing to do with Woman gaga!

    Your individual stuffs outstanding. Always deal
    with it up!

  6. I’m impressed, I have to admit. Rarely do I come across a blog that’s both equally educative and
    amusing, and let me tell you, you have hit the nail on the head.
    The problem is an issue that too few people are speaking intelligently about.
    I’m very happy that I found this in my hunt for something relating to this.

  7. You actually make it seem so easy with your presentation but I
    find this matter to be really something which I think I would never understand.
    It seems too complex and extremely broad for me. I am looking forward for your next post, I’ll try to get
    the hang of it!

  8. Hmm it appears like your blog ate my first comment (it was extremely long) so I guess I’ll
    just sum it up what I submitted and say, I’m thoroughly enjoying your blog.
    I as well am an aspiring blog writer but I’m still new
    to the whole thing. Do you have any points for inexperienced blog writers?
    I’d really appreciate it.

  9. Attractive section of content. I just stumbled upon your website
    and in accession capital to assert that I get actually enjoyed account
    your blog posts. Anyway I will be subscribing to your feeds and even I achievement you access consistently fast.

  10. Oh my goodness! Incredible article dude! Thanks, However I
    am going through troubles with your RSS. I don’t understand the reason why I cannot subscribe to it.
    Is there anyone else getting the same RSS issues?
    Anyone that knows the solution can you kindly respond?
    Thanx!!

  11. I was wondering if you ever considered changing the structure of your blog?

    Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people
    could connect with it better. Youve got an awful lot of text for only having one or 2 images.

    Maybe you could space it out better?

  12. Wonderful items from you, man. I’ve take into account your stuff prior
    to and you are just extremely great. I really like what you’ve bought here, really like what you
    are saying and the best way during which you assert
    it. You are making it entertaining and you continue to
    care for to stay it sensible. I can’t wait to read far more from
    you. This is actually a wonderful site.

  13. Hey! Do you know if they make any plugins to assist
    with Search Engine Optimization? I’m trying to get my blog to rank
    for some targeted keywords but I’m not seeing very good gains.
    If you know of any please share. Kudos!

  14. Simply wish to say your article is as surprising.
    The clearness in your post is just spectacular and i can assume you are an expert on this subject.

    Well with your permission allow me to grab your feed to keep updated with forthcoming post.
    Thanks a million and please continue the enjoyable work.

  15. Hey this is kind of of off topic but I was wondering if blogs use WYSIWYG editors or if you have
    to manually code with HTML. I’m starting a blog soon but have no coding expertise so I wanted
    to get advice from someone with experience.
    Any help would be greatly appreciated!

  16. This is the perfect site for everyone who wants to understand this topic.
    You understand a whole lot its almost tough to argue
    with you (not that I actually will need to…HaHa). You definitely put a brand new spin on a topic that’s been discussed for decades.
    Excellent stuff, just great!

  17. Great post. I was checking continuously this weblog and I’m inspired!
    Very useful info particularly the ultimate part 🙂 I care for
    such info much. I was seeking this certain information for a long time.
    Thanks and good luck.

  18. Hi there are using WordPress for your blog platform? I’m new to the blog world but
    I’m trying to get started and set up my own. Do you need any coding knowledge to make your own blog?
    Any help would be greatly appreciated!

  19. Nice blog right here! Additionally your web site quite a
    bit up very fast! What host are you using? Can I am getting your affiliate hyperlink on your host?
    I desire my website loaded up as quickly as yours lol