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Donate your car and pay less tax


When you’re ready to offload your old or scrap car in Melbourne, you might be considering the best way to make some money out of the process. Often this might mean trying to sell or trade it in for some cash – but have you ever considered donating it instead?

Donating a car is a good option for people wanting to give back to a charity of their choice – but also claim a nice little tax deduction in the process.

If you are donating your car to charity online, Kids Under Cover is pretty much your only option currently available in Melbourne. The good news is this charity not only accepts cars, but also vans, motorbikes, caravans, trucks, buses, tractors, boats on trailers and much more. After you submit your details, the charity arranges collection of the vehicle, before putting it up for auction. Once sold, proceeds are put towards projects on youth homelessness at Kids Under Cover – and you’ll get your tax-deductible receipt 8-12 weeks later as a thank you.

Of course – you may feel more strongly about another charity and want to focus any donations towards them. While you may not be able to donate your car directly to these charities, you’re not completely out of luck. You can still turn your car into a tax-deductible donation for your preferred charity.

Companies like Rapid Car Removal, which provide instant cash for cars in Melbourne, allow you to sell your car directly for cash and donate that amount directly to the cause you care for.

Companies like these also tend to care for the community, so you can tell them you want to transfer the proceeds to whatever cause you care for. In these situations they’ll work to maximise the value of the car and also deposit the proceeds to the charity of your choice, on your behalf.

Whatever direction you choose – as long as the proceeds from the car sale are donated to charity, and a tax-deductable receipt is provided, you’ll be able to make the deduction come tax time. It’s a great way to give back to the community.

Want to learn more about what other deductions you might be able to claim come tax time? Speak to one of our expert tax accountants about your options today!

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The Hopkins Group

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