If you happen to be driving along the streets of New Jersey, you will likely see charities with stickers “Donate Car NJ” plastered to their windows. Chances are if you are no longer happy with your vehicle and are thinking of getting a car donation tax deduction, you might actually consider making such a donation.
Want to “Donate Car NJ”? Well, here’s how to do it.
First of all, do some research on New Jersey charities that accept car donations. The NJ division of the IRS has a list of such non-profit organizations, including the Make-A-Wish Foundation and the Moorestown School of Music. If you plan to make a donation to your local church, mosque, temple or synagogue, inquire with the IRS if they are qualified.
Next step, make sure that you have the title of your car. If you have lost the title, you can apply for a duplicate title with the New Jersey Motor Vehicle Commission. While at the MVC, you might also want to make inquiries on how to determine the value of your car. While using the Kelley Blue Book website is the most recommended method, the MVC can also offer you advice on how to find out your car’s fair market value using local auto trader resources. Don’t forget that the state requires that you release the liability of your donated car. Again, the MVC will instruct you on how to do so.
Contact your chosen charity and arrange for your car to be picked up at your home or a convenient location. Transfer ownership by signing the car title over to the charity. Remove the license plates and surrender them later to the MVC. NJ laws state that the license plates cannot be transferred to a new owner.
The charity should give you an initial receipt. The receipt should contain the name and federal tax ID number of the charity, your name and personal information, and details about the car donated (such as the model, make and year). Wait for a second receipt after your car is sold at auction. The value for which your car sold (and is indicated in the receipt) is the amount that will be deducted in your taxes.
Learn more tips on how to “Donate Car NJ” today!