If you have an old or unwanted vehicle sitting around you might be thinking about what to do with it. Two common options are donating your car to charity or junking it for cash. Both can help you clear space and do something useful with your vehicle. But when it comes to tax benefits there are some key differences you should know.
Donating a Car
When you donate your car to a registered charity you can usually claim a tax deduction. The amount you can deduct depends on how the charity uses your vehicle.
- If the charity sells your car you can deduct the sale price it receives.
- If the charity keeps and uses the car you can deduct the fair market value of the vehicle.
You must itemize your deductions and keep all donation receipts. The charity should also give you a written acknowledgment of the donation.
Junking a Car
When you junk your car you sell it to a licensed buyer like Cashing Carz Instead of a tax deduction you get instant cash in hand. This is often the better choice if your car has no resale or donation value or if you do not plan to itemize deductions on your taxes.
Junking your car also saves time. You get free towing and payment on the spot with no paperwork or donation forms to deal with.
Which Option Is Better?
It depends on your goal.
- If you want a tax deduction and your car is still in usable condition donation can be a good choice.
- If you want quick cash with zero hassle junking is the smarter option.
Remember that the value of a junk car is often small. In many cases the tax deduction from a donation may not make a big difference.
Why Cashing Carz Is the Smarter Choice
At Cashing Carz we offer a fast and simple process. You call us. We give you a free quote. We pick up your car and hand you cash on the spot. No waiting for tax season and no uncertain deductions.
You get guaranteed money today and we handle all the towing and paperwork. It is the easiest way to turn an unwanted car into instant cash.
Final Thoughts
Both donating and junking your car can help you get rid of an unwanted vehicle in a positive way. But if you want a quick reliable and stress-free solution choose Cashing Carz. We make it easy to say goodbye to your old ride and hello to extra cash in your pocket.
