Car Donation In Utah, Ut
What You Need To Know
Car donation in Utah is a win-win situation for everyone; the charity gets a vehicle to help it bring in resources and pursue its cause, and the donor receives benefits for giving up such a valuable item.
Of course in Utah, it’s important that all laws and regulations are followed.
Below you will find answers to the most important questions you might have if you are thinking about donating your vehicle to charity in Utah.
We have also provided all the relevant links you might need to the Utah Department of Motor Vehicles where appropriate.
1. What Can You Donate In Utah, Ut?
When looking for a donation vehicle
you need to remember that you can donate more than cars, trucks
and SUVs in the state of Utah.
Not Only Cars
For instance you can also donate motorcycles, mopeds, snowmobiles, trailers, planes, recreational vehicles, off-road vehicles, RVs, all-terrain vehicles and really any other sort of vehicle that is legal to own and use in the United States. Each type of vehicle will have its own specific title requirements with which you should familiarize yourself at the Utah DMV website
Ask Your Charity
If there’s ever a question about whether or not your vehicle is an acceptable donation then all you have to do is contact the charity and ask if it will take your vehicle off your hands.
2. How To Release Liability Of Your Vehicle?
is the legal term that means you have responsibility for accidents or injuries that your vehicle is involved in, and when you make a car donation
it’s important that you make sure you transfer that liability.
Buyer’s & Seller’s Responsibilities
In Utah this means that you need to transfer the title of the vehicle to the charity. The Texas DMV provides comprehensive information on buyer’s and seller’s responsibilities on their website.
Once the title of the vehicle is transferred over then you have officially given both the physical ownership as well as the nebulous, legal ownership to the charity. For any questions concerning your car title and the transfer of liability contact the Utah Division of Motor Vehicles.
We also recommend you look at the excellent dmv.org website for more information about vehicle titles and registrations in Utah.
3. Where Can You Donate Your Vehicle In Ut?
While there are charity car auctions
and vehicle donation programs
aplenty in the state of Utah, it’s important that you check the list of 501(c)(3) charitable organizations provided by the Better Business Bureau
. Both these sites list charities in all the main towns and cities in Utah.
- Brigham City
- Cedar City
- Park City
- Salt Lake City
- West Valley City
If you donate your car to an organization that falls outside of these charitable parameters, then you won’t be able to claim your donation as a tax deduction.
Fortunately once you’ve decided which charity will be getting your donation all you have to do is contact them and ask where in the state you can bring your donation to.
4. How To Maximize Your Charity’s Donation?
When you offer a charity car donation
you are doing so primarily to benefit the charity in question. However, with a few simple preparations you can make sure that your charity gets as much for your donation as possible.
Deliver Your Vehicle
For instance, you should always drop your donation off yourself rather than letting the charity pick up the cost of the tow as a simple method of keeping the organization’s costs down.
Additionally, while it’s perfectly acceptable to donate junk cars to charity, the charity will get more money for a functional vehicle than for a non-functioning one. So you should make any repairs and do any cleaning that’s necessary before handing your vehicle over to the charity as a way to be sure it brings in as much money as possible.
Retail Car Auctions
Lastly, find a charity that auctions your donation in the retail market rather than a wholesale one to insure that it earns as much money as possible.
5. What Documents Do You Need In Utah?
Where to donate a car is only half the knowledge; you also have to have all the paperwork on hand in order to donate your vehicle. In Utah, that means you need to have the title to the vehicle so that you can hand it over.
If you don’t have the title to your vehicle, or if you need to get a replacement title you need to contact the Utah Division of Motor Vehicles. You will need to download and complete Form TC-123, Application For Duplicate Vehicle Title. A title fee of $6 applies.
Find more information on the replacing titles and registrations in Utahat the DMV website.
6. How To Maximize Your IRS Tax Deduction?
Your vehicle donation tax deduction
is your reward for donating to charity, but if you’re careful and calculated there are several ways to get the best deduction possible.
Partial Cash Payments
For instance, some charities will offer you a partial cash payment when your vehicle is sold, which means that you will have dollars in your hand as well as a tax deduction.
The cash must be claimed on your IRS tax forms, and the payment will be deducted from your total deduction amount, but it reimburses you nicely. This is ideal if you have a higher value car, truck or even a boat.
Claiming Fair Market Value?
Also, if a charity plans to use your vehicle for an extended period of time before sale (in the course of its own activities), if it plans to give your donation away for free or if it intends on selling your vehicle as a price far below the fair market value (to a person in need), then you may claim the fair market value of the vehicle on the date your donated it as your deduction.
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