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Vehicle donation is the method in which the junk cars are sold out to charity fund. The vehicles which do no longer exist can be sold to charity fund and can claim tax.
To sell the vehicle to charity fund there are several steps
1. Find the right organization to donate the vehicle. 2. You must prepare the car title as the donation organizations only accept cars with titles. 3. Make sure that the charitable fund is eligible to give tax benefits. 4. You must ask or demand for receipt from charitable fund. 5. If the vehicle value is more than $500 than the donor has to file the Section A of the 8283 form and if the car is worth $5000 then donor has to file section B of the 8283 form. 6. You must make sure that charitable fund is giving the right amount of money. If the organization simply gives charities flat fees - say, $100 for a used vehicle regardless of its value, or $2,000 a month - your donation may not be eligible for a tax deduction.