When is the Best Time for a Car Donation in Seattle

Many people wait to donate their car until the very end of the year. When they realize that they will need to come up with tax deductions in order to avoid paying income taxes, they attempt to offset the potential tax debt with a car donation in Seattle. Unfortunately for them, these people are actually donating their cars at the worst possible time.

New tax laws passed in 2005 make the end of the year the worst time for a car donation in Seattle. According to the new tax law, the amount of your tax deduction is no longer related solely to fair market value. In some cases, a receipt from the charity showing the amount that they received for the car is required for your tax forms and deductions.

According to the new tax law, you may only claim fair market value for your car donation in Seattle if your car's fair market value is under five hundred dollars. Otherwise, you must claim a deduction for your car donation in Seattle in the amount of money that the charity actually received from the sale of the car.

Some charities will hold auctions for a car donation in Seattle several times per year. These charities are those mainly accept a car donation over a monetary donation. Charities of this type include fire departments and police departments that use the proceeds to buy teddy bears and other toys or stuffed animals for child victims of crime and circumstance.

Even with these charities, you should not wait until the very end of the year to make your car donation in Seattle. Auctions will likely not be held until spring, cutting your time to file your taxes and claim your deduction for the car donation in Seattle very short indeed. The latest you should make your car donation in Seattle for these types of charities is November.

Most charities that will accept a car donation in Seattle only hold one or two auctions per year. These charities mostly receive monetary donations rather than car donations. It is not profitable to hold many auctions with few cars, so they hold one or two auctions with many cars instead. If you donate your car on December 31, there is no guarantee that the car will be sold and you will get your receipt before April 15.

The best time to make a car donation in Seattle is in the middle of the year, during the summer or fall. This time is the best time for car auctions, and the charities will be selling your car quickly if you take advantage of the season. This will ensure that you receive a receipt showing the tax deductible amount for your car donation in Seattle in plenty of time for tax season.