Do you have an older car that will cost more than it’s worth to repair? Rather than sell it for scrap, why don’t you decide to do some good and save some money on your income taxes in the process by donating it a good cause?
Donate Your Car to Do Good
When you make the decision to donate your vehicle to Carcone’s, you will be helping to support The Linden Fund. This charitable organization provides help and support to newborns and their families. It also provides Level III Neonatal Intensive Care Units with up-to-date equipment.
We can arrange for your car to be picked up, as long as the vehicle is easily accessible. (It cannot be located in a parking garage or an alley.) Any existing liens, such as parking tickets, must be paid off in full before your vehicle can be donated.
Donate Your Car: Get a Tax Deduction
When you donate your car, you will be issued a charitable tax receipt. You have a number of options for claiming charitable donations on your income tax return. In any particular year, you can claim:
- Donations made by December 31 of that year
- Any unclaimed donations made in the pervious five years
- Any unclaimed donations made by your spouse or common-law partner in the current tax year or the previous five years
You can claim eligible amounts of charitable donations up to an amount equal to 75 percent of your net income for income tax purposes. There are two charitable tax credit rates that apply on your donation; one is for the federal government and the other is for your province or territory of residence. If the amount of your total donations for the year is over $200, you will qualify for a higher rate. The Canada Revenue Agency has a Charitable donation tax credit calculator on its website.
The tax credit you receive when you donate your car is a non-refundable one. This means it is used to reduce the amount of income tax you owe, but it will not result in a higher refund.
Your tax savings will usually be equal to the amount of the charitable tax credit you receive. If you get a tax credit of $150, you will pay $150 less in income tax for the year.
Do consider donating an older vehicle and getting a tax receipt. You can feel good knowing that you are helping someone else, and you will save some money on your income taxes as well.
