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If you have a car that is not been used or is no-longer-wanted, then you can donate it to get tax benefits, besides becoming popular in the United States. Few says that car donation is a tax shelter and the centers for Car Donations are increasing every year.

There are some formalities to be maintained in car donations to get the tax benefits such as getting written acknowledgement of the subsequent sale of the car by the charity, and also instead of taking standard deduction; one can opt for itemizing tax returns.

There is a likely trap on how much the charity would benefit when you eventually give away your car. Problem begins when you were never keen to understand how the percentage of the proceeds from the car would be given to the charity. Yes, there are fees that would apply and you should not be trapped by any agency that they would give the whole sum to the charity.

Photo by kristiewells

Photo by kristiewells

If anyone promises that, you would need to be careful because most likely they would be lying to you. Usually, the fees that is charged by the agency where you would donate a car would cover the pick up fees, tax and other expenses that they would incur while handling the transfers or titles and rest.

But, this should not be so much, when they are silent about how much they would take from the sale value, you would need to immediately see them as a trap and continue with your search for a more honest and reliable as well as transparent agency that would not try to confuse you.