Car Donation In South Dakota, SD
What You Need To Know
Car donation in South Dakota can save you the time and trouble of attempting to sell your car, and it will still allow you to be rewarded in the form of a useful tax deduction.
However, when it comes time to make your vehicle donation, you need to follow all the laws of the state.
Below, you will find all the answers to the most important questions you might have if you are thinking about making a car donation in South Dakota.
1. How To Maximize Your IRS Tax Deduction?
Tax deductible car donation is one great reason to give your car to charity. However, if you’re careful about who you give your donation to, then you might be able to snag an even greater reward.
For instance, some charities will sell your car, and then give you part of the gross proceeds in cash.
This is only done for really expensive vehicles (or higher ticket items such as trucks and boats), and you must declare the cash on your taxes in addition to subtracting it from the gross proceeds you can claim as a deduction, but it allows you to realize some kind of profit. IRS publication 544 explains how you can do this.
Claiming The Fair Market Value
Additionally if a charity gives your vehicle away for free, sells it for a price far below the fair market value to a needy individual or family or even uses it for a significant period of time before sale (for their own purposes) you are allowed to claim the fair market value on the date of donation as your tax deduction amount.
2. What Can You Donate in South Dakota, SD?
If you’re not sure you have a donation vehicle
it’s important to keep in mind that you can donate a wide variety of vehicles in South Dakota.
For instance you could donate a car, truck, sport utility vehicles, off-road vehicle, all-terrain vehicle, RVs, motorcycle, jet ski, moped, snowmobile, boat, trailer, recreational vehicles and a variety of other sorts of vehicles.
If there’s ever a doubt whether a charity will take your donation all you have to do is call and ask whether or not your donation is acceptable.
3. How To Release Liability Of Your Vehicle?
When you hand over your donation car
to charity you need to be sure that you’re freed from all liability as well as physical ownership of the car.
If you aren’t then despite the fact that you gave your vehicle to charity you may still be held legally responsible for injuries and damages in which the vehicle is involved in future.
What You Need To Know
In order to transfer liability you need to sign the vehicle title over to the charity when you donate your car. The process for donating your car in South Dakota is the same as selling it.
The state Motor Vehicles Division provides detailed advice on 7 steps for selling your vehicle in South Dakota. Note that you will need to complete a Seller’s Notification of Sale which you can download from the DMV website.
If you require further information, we recommend consulting the dmv.org website for more on vehicle titles and registrations in South Dakota.
4. Where Can You Donate In South Dakota?
Whether you prefer charity car auctions
or you’d prefer a vehicle donation program
you have to choose what charity you’re going to donate to before you can know where to take your car.
Fortunately the Better Business Bureau has compiled a list of 501(c)(3) charities and www.charitynavigator.org in order to make your job easier. You should be able to locate participating charities in all major towns and cities in South Dakota.
- Black Hills
- Hot Springs
- Rapid City
- Sioux Falls
Once you’ve found your charity of choice all you have to do is contact them and ask where in South Dakota you can take your donation vehicle to drop it off.
Making Out-of-State Donations
In IRS Publication 4303, the IRS places no restrictions on where you donate your car. Therefore, you are free to find charities in other states. If you live near a state border, therefore, it may even be more convenient.
5. What Documents Do You Need To Donate?
When you know where to donate a car
you’ve only completed half the battle; you also need to know what paperwork to bring so that you can donate your vehicle quickly and efficiently.
In South Dakota that means you have to bring the vehicle’s title when you donate. This ensures both that you are the proper owner of the vehicle, and thus that you’re legally allowed to donate it, in addition to providing a simple way to transfer both the ownership and the liability of the vehicle to the charity.
If you need to get a replacement title for your vehicle then contact the South Dakota Motor Vehicle Division. You will need to download Form MV-010, Application For Duplicate Certificate of Title, as well as pay an administration fee.
6. How To Maximize Your Charity’s Donation?
When you make a car donation to charity
you are providing resources for that charity to keep moving forward with its mission. However, a few simple acts on your behalf can make sure that the charity gets as much money as possible for your donation.
Is Your Car At Its Best?
First, make sure that your vehicle is cleaned up and repaired before you donate it. While you can donate junk cars, functional vehicles will go for more money.
Additionally, make any material repairs (repairs which will increase the value of the vehicle) before donation to make sure it sells as well as possible.
Avoid charities that sell at wholesale car auctions, and work instead with those that work with individuals, or which sell at retail prices. Lastly, drop the vehicle off yourself; otherwise the charity has to pay for the tow.
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