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Cars 4 Kids
If you have a car valued at over $5,000 that you don't need anymore and would like to reduce your tax bill, the Australian Tax Office (ATO) has advised Learning Links that individuals and companies have a legitimate way of reducing their tax and helping the community.
Learning Links is a children's charity that helps children of all ages who struggle to learn and their families. Over 2,000 families visit our branches every week and a similar number also receive one-off services or attend group programs each year. |
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Our organisation was established in 1972 and provides a range of specialist services to help very young children who find it hard to do things like crawl or walk and older children who find it hard to read and write at school.
As a charity, Learning Links relies on the generosity of others to continue to assist children in need.
Anyone can help by participating in Learning Links' Cars 4 Kids program. By donating a vehicle with a market value over $5,000 to Learning Links (a charity and deductible gift recipient), you will avoid the hassle and costs of disposal, assist children and families and may be eligible for a tax deduction.
As part of Cars 4 Kids, Learning Links will arrange to have donated vehicles collected (Sydney-metropolitan area only) and the ownership changed at our cost. Learning Links will then give you a receipt for the vehicle. The vehicle will then be sold (most likely auctioned at one of Sydney's leading auction houses) with the proceeds going to Learning Links, unless it is a vehicle like a school bus that we might be able to use.
Regardless of the sale price at auction, the ATO advises that valuation of the vehicle and tax deduction is based on the market value as assessed by them.
As part of the donation process, we suggest you contact the ATO or visit their website. For donations of vehicles valued at over $5,000, a Certificate of Valuation is needed - we suggest you investigate this for your own tax situation and the value of the car. In August 2006, this deposit for the cost of this Certificate was $174 and Learning Links understands that this is usually the cost associated with valuing a car and is happy to pay this cost for all donors of cars.
As an example, if your 2001 Holden Commodore is valued by the ATO at $22,000, you would receive a valuation for tax purposes of $22,000 and a tax deduction equal to this amount.
If you had auctioned the vehicle, you may only have received $18,000 for the car less costs. If you were considering donating, this is a great way to maximise the impact of the donation and still make a big difference to children and families in need.
Learning Links receives the sale proceeds and you or your company gets the benefit of a tax deduction equivalent to the value of the car - in some cases more than the resale value (depending upon the market for used cars). We strongly recommend you check these details with your accountant or the ATO prior to considering this opportunity.
Whilst we sincerely appreciate donations of cars, unfortunately we cannot accept donations of unregistered or unroadworthy vehicles or vehicles with a value less than $5,000. As a small charity, we do not have the funds to repair or register cars and hope you understand that whilst we appreciate the kindness behind such an offer, we regret that we must decline a car in these circumstances.
If you would like to talk to someone about this opportunity, please call our Head Office on (02) 9525 8222 and ask to speak to someone about Cars 4 Kids.
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