Where Can I Donate a Car in NJ

If you're asking yourself 'Where can I donate a car in New Jersey?" then you're ready for some quick advice about car donations, as well as specific suggestions of charities that can take your wheels and make good social use of the donation.

First, consider the pros and cons of selling your car, compared to donating it.  Remember that selling a car takes time and involves at least some degree of hassle.  You may also incur out of pocket expenses to have the car cleaned or to advertise the car for sale.  Weigh all of this against a realistic assumption about how much you might be able to get for the vehicle.  On the other hand, a donation is usually straight forward, can help a charitable organization finance it's social work, and can create a meaningful tax dediction for you at the end of the fiscal year.

Once you decide to donate a car or truck, it's time to get practical.  Be sure to have the title of your car ready.  If you've lost the original title, you can apply for a duplicate at your local DMV.  Clean out any of your personal posessions such as music or gear stored in glove compartments, under chairs, or in the trunk.  Next, select your charity and follow their instructions as to how to make the physical handoff.

When selecting a charity in the NJ area, consider the following:
- Only certain charities are set up to accept donations
- Select a charity with a mission that is meaningful to you.  For instance, if you're passionate about the environment, donate your car to an environmental organization.  If you'd prefer to support children's services, look for charities that operate in that arena.
- Verify that the charity is officially recognized and established with a track record of success.  Do a few web searches and ask a few questions to get comfortable with the org.


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Tax advantages of buying a new car

Lately, all the new car related news has centered on the "Cash for Clunkers" program. That incentive has now ended but it can still be a good time to buy a new car. The reason is that the deduction for the sales tax paid on a new car purchase continues until the end of this year. Here are the specifics:

You can deduct all the sales tax paid on a car costing up to $49,500.

The deduction can be used multiple times if you buy more than one car.

The deduction phases out for single filers with adjusted gross income (AGI) higher than $125,000 and married filers with AGIs over $250,000.

This deduction can be claimed even if you don't itemize your deductions -- simply add the amount of taxes paid to your standard deduction.

And while we are on the topic of cars, remember that in most cases, if you are considering donating your old car to charity, the amount of your deduction is limited to what the charity can sell your car for. (The exception to this rule is if the charity is going to keep your car and use it themselves.)

Years ago, you used to be able to deduct the blue book value of your car but now, the deduction could be significantly less. Under the new rules, which went into effect with the 2005 tax year, the charity will send you a recepit for the amount they were able to receive at an auction. It might take a while to get the receipt and you can't be sure what your deduction will be until you get the receipt. Keep that fact in mind when trying to decide to trade in or donate your old car and if you do donate your car, be sure to file Form 8283 when you file your taxes.


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