HOW TO OPEN A ONLINE TRADING ACCOUNT

What is a Trading Account?

A trading account is used as a way for an investor to purchase stocks, in relation to investments. But a trading account can hold not only stocks, but also cash, securities and many other types of investments. A trading account is held by a financial institution and managed by an investment dealer to run a trading strategy for the account holder. There are different types of trading accounts available, including cash accounts and margin accounts.

Getting Started with a Trading Account

When you open a new trading account you will naturally have a number of questions. “What sort of account am I opening? Should I fund it from my bank account? I’d like to roll all my investments into one account. Can I do that here?”

Realize that every online brokerage account sign-up process is slightly different. Let’s focus on the key elements that are found in all major online brokerage firms to answer a couple of these quick questions that we think about it. “Should I fund it from my own bank account?” And the answer is, “Yes,” because of the requirements of the brokerage you must have any funds coming directly from your name and your name only into an account that is set up in your name and your name only. You cannot use a check from a friend in order to fund your account. The best way to fund your account is via a bank wire directly from your checking or savings account into your new brokerage account.

The type of account you choose will depend on whether your account is taxable or tax deferred which would be something like a 401(k), IRA, Traditional, Rollover, Roth or SEP. Is the account just for you as an individual or will it belong to you and your significant other or spouse? Which could mean it would be a joint account. Your choices include personal accounts, non-retirement, and under personal accounts you can open an individual account. Now this should be nonretirement, though you might want to open a joint account for you and your spouse or significant other. Possibly, you may consider, opening a custodial account which would be for a minor, perhaps your children or a niece or nephew. If it is not going to be a nonretirement account then we would be looking at a traditional IRA, Rollover, or possibly a hybrid like a Roth IRA or SEP which stands for simplified employee pension plan.

Types of Trading Accounts: Margin vs. Cash Accounts

The next thing you have to decide is whether you’re going to use a cash or margin trading account. Let's explore the differences between these two types of accounts.

Margin Trading Account

A margin account involves a line of credit from your brokerage firm and this allows you to buy stocks or other securities and/or options if you so desire. You also have the option of opening a margin account with options; realize that buying an option means that you are purchasing the right but not the obligation to buy or sell a stock at a specific price. You should know that options are complicated and only appropriate for very experienced investors of substantial means.

Cash Trading Account

A cash account means that you can place trades for the investments using only the amount of money in your account. In other words, if you place $10,000 in your account, you would only be able to spend $10,000 on any one position or number of positions. Until you close a position, you would no longer have any more buying power.

Remember, because it is a cash account, you are not allowed to borrow money. Depending on your brokerage, the settlement date for cash transactions may be as short as the transaction plus one day, but may go as long as the transaction plus three days. It is not like having instant T-0 that would be available in a typical margin account of a direct access trading brokerage.

Settlement Period

When we talk about transaction plus two or plus three we’re talking about the settlement. If I buy a stock on Monday and the transaction was at T-3, that means the whole thing is settled and done on Thursday at which point I would have the availability of any remaining cash available to me for further purchases. Depending on the brokerage many of them will offer you T-1. Very rarely will you see a T-2. The older ones and larger ones tend to use transaction plus three or T-3.

What is Margin?

Most brokerages will offer you margin for your trading account. Basically, you are given credit to purchase additional stock. With a margin account you are essentially borrowing money from someone, like getting investors into your trades. Remember, when you borrow, there is always going to be interest. Interest is paid only if you hold a position overnight. The interest rate that you pay is dependent upon the brokerages and varies slightly. Typically, it is 2% over the prime interest rate. Needless to say, you are responsible to pay this money back, regardless if you win or lose in your investing or trading. Because margin allows for you to profit more than you put in, you also risk that you could lose more than you put in.

Using Margin

Margin is set up in your brokerage account at 2:1 if your account is under $25,000 in total assets. As an example, if you were to open your account with $10,000, you would be able to purchase up to $20,000 worth of equities. Most brokerages today will offer you 4:1 intraday margin if you deposit over $25,000. Please note that this is for intraday use only and you must maintain 50% overnight. This can have some ramifications if you were to spend $100,000 on your $25,000 cash. Overnight means you hold the position past 4:00p.m. EST and you would be liable for a regulation T margin call and your brokerage would ask you to show them an additional $25,000 which would be 50% of the $100,000. To do this, it must be deposited in your account within five working days of their call and it must remain in that account for 24 hours. After 24 hours you can withdraw the extra $25,000, having shown them that you can honestly come up with the money if you were to borrow more than they allow.

Intraday Margin PDT

Let’s take another look at Intraday Margin which is often referred to as Pattern Day Trader Margin or PDT. An intraday margin is, once again, if you had $25,000 or more the brokerage will allow you up to 4:1 leverage. In other words, if you had $25,000 you can borrow up to $100,000 for the purchasing of stock. This is intraday, so overnight the margin may only be 50%. If you use all the horsepower of the $100,000 buying power you would have to close at least a portion of that trade by the end of the day or have to come up with a regulation T margin call.

Your Personal Information

As you go through the account opening process, your brokerage firm needs to know a good deal of personal information about you. The information is needed for account handling, tax tracking, and other purposes. Congress recently passed the US Patriot Act which requires brokers to collect and verify certain personal information. Investors are always required to provide accurate personal information about themselves. The brokerage needs all this information so they can contact you to discuss changes in your accounts to verify sales or purchases and to let you know about a margin call.

What is Required to Open a Trading Account?

Online brokerage firms have policies regarding your privacy and how this information is handled. Make sure you take the time to familiarize yourself with the brokerage firm’s rules for the handling of your personal information. The following is a list of the personal information a brokerage firm will likely collect:

Your full name, street address, phone number, e-mail address, Social Security number, date of birth, US citizenship status, place of employment, approximate annual income, net worth with or without your home, your federal tax bracket, and any previous market experience.

Realize they are required to know who they are working with and you need to be up front and honest with them. In answering their questions, be sure you answer them properly. A lot of people don’t think about how their net worth includes their television sets and automobiles. They almost always think about their positions and accounts but their net worth goes beyond that. It goes into all of their holdings and what their market value would be for sale on the street. The same is true about market experience; if you tell them you have zero market experience you may be doing yourself a disservice. Remember that if you do have mutual funds or a 401(k) or you have traded stocks before, even if it was with another brokerage, these kinds of transactions actually do count towards your experience level. Incorrect information could result in your being exposed to more risk than you can handle and therefore the loss of funds can be greater than what you can afford.

Additional Information

As always there is additional information the brokerage firm will also ask you. If you work for a registered broker dealer they’ll ask whether you were a director, a 10% shareholder or policymaking officer of a publicly owned company as well as which company that might be. If you are a registered representative of a brokerage firm or a 10% or more shareholder in a company, then you may have special disclosure obligations in addition to the information already provided.

How to Fund a Trading Account

We talked briefly about funding the account. Your initial deposit can be made through an automatic transfer from your bank account. Most brokerage firms offer this service during business hours or by sending a check to the firm to be deposited. If it’s going to be a personal check, it has to have your name on it. You can open an account with existing stock bond certificates, transferring holdings from an account at another brokerage firm mutual fund, or bank; this is usually done through a form called the Automated Customer Account Transfer (ACAT). Most brokerage firms have a minimum deposit requirement for the opening of a new account; these may vary anywhere from as low as $500 to as high as $1 million. Most, however, offer cash accounts at a participation level of about $10,000. For those who wish to trade intraday margin of 4:1, the participation will vary between $25,000 and $30,000 to get the additional leverage.

Idle Cash

You also have to decide what is going to be done with your idle cash. Perhaps you have $10,000 and you bought $5,000 worth of shares of a specific stock, therefore you still have $5,000 of idle cash. You can ask your brokerage to have it pushed into different types of funds to earn interest for you so at least your money isn’t perfectly idle. These may include mutual treasury funds, mutual tax-exempt bonds, mutual primary funds, or even simple money market accounts.

Determining Your Suitability to Open a Brokerage Trading Account

Realize all this information is provided to determine your suitability to have a brokerage account. Your broker has a rule, Know Your Customer, and a brokerage firm must determine the investor’s ability to handle risk. This is usually broken down into four basic concepts.

• 1. Aggressive growth means you’re willing to take extra risk in order to get extra rewards and you may wish to trade or invest in volatile securities.
• 2. The next level down is simple growth that means you want to gain money in the account while preserving the original capital as much as possible and you can set certain levels of risk. “I want to do this but I don’t want to lose more than 5%,” and they would close the position if it went below that so you could only lose 5% if you choose that as your stop loss.
• 3. The third one is called income and an income risk level means you intend to use the profits from the account as a source of income. Trades and investments are going to be bringing in small amounts of money and at the end of the month, so that your account balance remains basically the same, anything you’ve made for the month comes to you.
• 4. The last one is the most conservative and that is capital preservation and this is where the investor intends to use the account for only one thing and that is to save and protect existing assets.

Last Steps to Opening a Trading Account

We’re almost finished with understanding the parameters of opening a new account. Below is a typical understanding statement of what you are going to provide to the brokerage and what the brokerage is going to provide to you. You want to read everything that you sign and if you have any questions, please ask the brokerage prior to signing or sending any money at all.

• I am of legal age to contract. I acknowledge that I have received, read, and agree to be bound by the terms and conditions as currently set forth in the BROKERAGE Customer Agreement and as amended from time to time. I ACKNOWLEDGE THAT MY BROKERAGE DOES NOT PROVIDE INVESTMENT, TAX, OR LEGAL ADVICE OR RECOMMENDATIONS. Under penalty of perjury, I certify (1) that my Social Security (or taxpayer ID) number shown on this form is correct and (2) that I am not subject to backup withholding because (a) I am exempt from backup withholding, or (b) I have not been notified by the IRS that I am subject to backup withholding or (c) I have been notified by the IRS that I am no longer subject to backup withholding (cross out item 2 if it does not apply to you). [The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding.]
• I understand that Stadium Online will supply my name to issuers of any securities held in my accounts so that I might receive any important information from them, unless I notify you in writing not to do so.
• I acknowledge that securities held in my Margin account may be pledged, re-pledged, hypothecated, or re-hypothecated for any amount due Stadium Online in my account(s) or for a greater amount. I UNDERSTAND THAT THIS ACCOUNT IS GOVERNED BY A PRE-DISPUTE ARBITRATION CLAUSE CONTAINED PARAGRAPH 31B OF THE STADIUM ONLINE CUSTOMER AGREEMENT.
• Depending on the Brokerage involved an Electronic signature is sufficient – In other cases, the brokerage may have you print out the signature page and physically sign and mail in to them.
• In either case, you need to print out the entire document for your records and keep a copy of any signature pages for the future.

Read more

Mengejutkan, Amalan Yang Sangat Sepele Ini Ternyata Membuahkan Pahalan Yang Sangat Besar

“Barangsiapa menyingkirkan gangguan dari jalan kaum muslimin, maka akan dicatat untuknya satu kebaikan, maka ia akan masuk surga” (HR. Bukhari).

Ilustrasi - Foto(islamislogic.wordpress.com)

Surga adalah tempat kembali terbaik yang pasti ingin diraih oleh setiap muslim, didalamnya dipenuhi dengan segala kenikmatan dan kebahagiaan, tidak ada sedikitpun didalamnya orang akan mengalami kesedihan dan kesengsaraan.

Ketahuilah bahwa ada amalan-amalan yang dianggap ringan dan sepele namun justru sangat besar pahala dan keutamaannya, bahkan dapat dikatakan amalan-amalan tersebut bisa membukakan pintu-pintu surga.

# Menyingkirkan Gangguan Di Jalanan

Rasulullah Shallallahu'alaihi Wasallam bersabda, 

“Barangsiapa menyingkirkan gangguan dari jalan kaum muslimin, maka akan dicatat untuknya satu kebaikan, maka ia akan masuk surga” (HR. Bukhari).

Jalanan merupakan tempat hilir mudiknya manusia ataupun kendaraan, tak jarang kita jumpai ada beberapa benda kecil seperti kerikil ataupun paku yang sesungguhnya bisa membahayakan pengguna jalan dan mengakibatkan kecelakaan. Dengan mengambil atau menyingkirkannya, maka hal itu tercatat sebagai amal shaleh.

# Memberi Minum Binatang Yang Kehausan

Hadist yang diriwayatkan Imam Bukhari dan Musli, Dari Abu Hurairah, Rasullullah Shallallahu ‘Alaihi Wasallam bersabda, 

“Ketika sedang melakukan perjalanan, seorang laki-laki merasa haus, lalu ia menuju ke sebuah sumur dan minum air. 

Setelah ia keluar, ternyata ada seekor anjing yang menjulurkan lidahnya dan memakan pasir karena kehausan. 

Lelaki itu bergumam ‘Anjing ini telah merasa kehausan seperti yang telah aku rasakan’. 

Ia pun kembali menuju sumur dan memenuhi sepatunya dengan air, lalu memberikan minum anjing tersebut. 

Maka Allah berterima kasih kepadanya dan mengampuni segala dosanya. 

Mereka (para sahabat) bertanya: 

"Wahai Rasullullah, apakah kita akan mendapatkan pahala dengan memberi minum binatang?" 

Beliau menjawab: "Pada setiap limpa yang basah, terdapat pahala”.

# Menjenguk Orang Yang Sedang Sakit

Salah satu kebaikan yang sepele namun bernilai besar pahalanya adalah menjenguk orang yang sakit. Tak hanya baik dalam pandangan manusia, amalan ini juga akan menposisikan manusia dalam keadaan yang mulia.

Dari Abu Hurairah, Rasulullah Shallallahu ‘Alaihi Wasallam  bersabda: 

“Barang siapa menjenguk orang sakit atau mengunjungi saudaranya karena Allah, maka malaikat berseru: ‘Engkau adalah orang yang baik, langkahmu adalah langkah yang baik, dan engkau telah mendapatkan suatu posisi di surga’ ” (HR Tirmidzi)

# Senyum Manis

Menebarkan senyum ataupun salam termasuk sebagai suatu kebajikan dan menghasilkan pahala. Dengan senyum pula menunjukkan bahwa Islam merupakan agama yang ramah dan rahmatan lil alamin.

Rasulullah Shallallahu ‘Alaihi Wasallam  bersabda,  

“Kebaikan akhlak adalah keceriaan wajah dan menjauhi amarah,”

# Menutupi Aib Orang Lain

Dalam suatu masyarakat sering kita temukan orang yang berghibah atau membicarakan aib orang lain, namun ketahuilah bahwa orang yang menggunjingkan aib orang lain sama saja dengan memakan bangkai saudaranya sendiri. 

Rasulullah Shallallahu ‘Alaihi Wasallam bersabda: 

“Tidaklah seorang hamba menutup aib seorang hamba di dunia, melainkan Allah akan menutup aibnya pada hari kiamat” (H.R. Muslim).

Wallahu 'Alam

Read more

Masya Allah!! Ternyata Amalan Sepele Inilah Yang Membuat Pintu Surga Terbuka

Pasti ingin masuk surga serta berjumpa segera dengan Allah, Kekasih yang sampai kini di cintai serta dirindukan. Pastinya, yang dapat masuk kedalam surga serta berjumpa dengan Allah, yaitu orang-orang pilihan yang sepanjang hidupnya didunia menjalankan perintah serta menjauhi larangan-Nya dengan cara sungguh-sungguh.

Namun, orang yang telah mengerjakan semua perintah serta menjauhi larangan-Nya, janganlah semerta-merta terasa memiliki amalan kebaikan yang banyak serta lalu layak untuk masuk surga. Pemberian ticket ke surga yaitu hak prerogratif Allah. Dia yang Maha Menentukan, yang Maha Menimbang. Muslim serta muslimah yang baik harus selalu rendah hati serta takut pada Allah, bahkan juga atas kesombongannya sendiri yang mungkin terbersit didalam hatinya tanpa ada diakui. Tidakkah amalan itu tergantung pada tujuannya, kata Nabi? Walau kita kerap lakukan amalan kebaikan yang “besar”, namun kemauan kita salah, terlebih cuma pencitraan, maka di sisi Allah, amalan kebaikan itu dapat tidak ada artinya sekalipun. Di masa “masyarakat tontotan” seperti saat ini, semua amalan kebaikan memang mudah tergelincir jadi sebatas tontotan yang riya’.

Sebaliknya, malah saat kita lakukan amalan kebaikan yang “ringan”, yang mungkin sampai kini kerap dianggap remeh, bila dilakukan dengan kemauan yang benar hanya lantaran Allah, dapat jadi begitu mulia serta bernilai di segi Allah. Walau tidak ada sinar kamera yang menyorotnya. Sungguh, amalan kebaikan yang remeh itu dijanjikan bisa buka pintu surga-Nya. Mari ketuk pintu-pintu surga dengan sebagian amalan yang selama ini dikira ringan serta remeh itu, di bawah ini :

1. Memberi Minum Binatang
Jangankan berikan minum binatang. Kita sekarang ini rasanya telah banyak yang tidak perduli pada binatang. Padahal, berikan minum binatang ini jadi salah satu amalan kebaikan yang bisa menghantarkan seorang kedalam surganya Allah. Masihlah ingatkah dengan narasi Rasullullah waktu bercerita seorang lelaki yang memberi minum seekor anjing sampai lalu Allah mengampuni dosa-dosa lelaki itu serta memasukkannya kedalam surga? Iya, dalam hadist yang diriwayahkan Bukhori serta Muslim, dikisahkan dari Abu Hurairah,

Rasullullah SAW bersabda “Ketika tengah lakukan perjalanan, seorang lelaki terasa haus, lantas ia menuju ke satu sumur serta minum air. Sesudah ia keluar, nyatanya ada seekor anjing yang menjulurkan lidahnya serta memakan pasir lantaran kehausan. Lelaki itu bergumam ‘Anjing ini sudah terasa kehausan seperti yang sudah saya rasakan’. Ia juga kembali menuju sumur serta penuhi sepatunya dengan air, lalu memberikan minum anjing tersebut . Jadi Allah berterima kasih padanya serta mengampuni semua dosanya. Mereka (beberapa sahabat) bertanya : Wahai Rasullullah, apakah kita bakal memperoleh pahala dengan berikan minum binatang? Beliau menjawab : ‘Pada tiap-tiap limpa yang basah, ada pahala’”.

2. Menyingkirkan Masalah dari Jalan
Bila kita tengah berjalan, tak tahu itu naik kendaraan atau jalan kaki, serta kita temukan halangan di jalan berbentuk batu yang tergeletak di dalam jalan, bambu yang menghalang, atau mungkin saja kulit pisang yang dibuang asal-asalan, lalu lalu dengan cara spontan kita menyingkirkan rintangan tersebut . Jadi, itu bakal dicatat sebagai amalan kebaikan di segi Allah.
Rasulullah bersabda : “Barangsiapa singkirkan masalah dari jalan kaum muslimin, jadi bakal dicatat untuk dia satu kebaikan, jadi ia bakal masuk surga” (HR. Bukhari).


3. Menjenguk Orang Sakit
Sesibuk-sibuk apa pun kita, sempatkanlah untuk menjenguk saudara, rekan, serta kolega kita yang tengah sakit. Selain adalah “panggilan kemanusiaan”, amalan kebaikan ini dicatat sebagai pahala yang tinggi di sisi Allah. Allah menjanjikan mereka yang menjenguk orang-orang sakit, posisi yang mulia di Surga-Nya nantinya.
Rasulullah bersabda : “Barang siapa menjenguk orang sakit atau berkunjung ke saudaranya karena Allah, jadi malaikat berseru : ‘Engkau yaitu orang yang baik, langkahmu yaitu langkah yang baik, serta engkau sudah mendapatkan satu posisi di surga’” (HR Tirmidzi dari Abu Hurairah, r. a.)

4. Senyum serta Ceria
Menebar senyum serta salam pada semua orang adalah satu kebajikan yang dijanjikan ganjaran pahala serta surga oleh Allah. Oleh sebab itu, muslim serta muslimah yang baik mesti mengembangkan sikap yang ramah serta penuh ceria pada orang lain, hingga Islam juga betul-betul dirasa membawa rahmat untuk semuanya. “Kebaikan akhlak yaitu keceriaan muka serta menjauhi amarah, ” kata Rasulullah.

5. Tutup Aib Orang Lain
Dalam Islam, Allah begitu membenci ghibah. Orang yang bergunjing mengenai keburukan saudaranya sendiri, dikira sama dengan menggunakan bangkai saudaranya itu. Menahan diri tidak untuk bergunjing serta tutup aib orang lain begitu disarankan untuk seorang muslim serta muslimah. Amalan kebaikan ini dijanjikan ganjaran surga oleh Allah. Rasulullah bersabda : “Tidaklah seseorang hamba tutup aib seorang hamba didunia, tetapi Allah bakal tutup aibnya pada hari kiamat” (H. R. Muslim).
Demikian beberapa amalan kebaikan yang mungkin selama ini dilihat enteng serta remeh, namun bisa mengetuk serta buka pintu surga lantaran ridla serta iradah Allah. Pasti masih banyak amalan kebaikan yang lain, yang tidak mungkin dibicarakan disini satu persatu. Semoga Allah senantiasa bersihkan hati serta meluruskan niat kita. Aamiin.

Referensi : -Disarikan dari buku “Amalan-Amalan Ringan Pembuka Pintu Surga”, karya Fakhruddin Nursyam, LC.
Sumber : ummionline

Read more

How To Donate Car In California

Are you ready to donate a car in California? If so, good for you! Donating a car to charity is a wonderful decision on many levels. First of all, your donation goes to help a great cause.  Plus, you get your old vehicle or junk car moved off of your property free of charge. You are also recycling an old vehicle, and you also get to claim the car donation as a tax deduction. 

In this post you'll find some tips on how to donate a car in California and some specific requirements you should be aware of that relate to California car donations.

1. To donate a car in California, you begin by submitting an online car donation form or calling the charity you wish donate your vehicle to.  If you wish to claim the car donation as a tax deduction, be sure to check that the charity is an IRS recognized nonprofit organization.

2. The process for receiving the tax receipt for your charitable donation may vary. Some charities will email you the initial receipt while others have the tow truck provide you with the receipt at the time of pick up. This is just an initial receipt and enables you to claim a tax deduction of up to $500. You should check with the charity to find out what their procedure is for providing you with this receipt when you submit your vehicle donation.

3. In the State of California, the license plates remain with the vehicle, so these should not be removed prior to the pickup.

4. Filing a Release of Liability with the California Department of Motor Vehicles is an important step you do not want to miss when you donate a car.  This document releases you from future liability which may arise for any reason after the vehicle is donated.  In California the procedure for filing a Release of Liability is that you must return the pink portion of the title or DMV form REG 138 to your local Department of Motor Vehicles. Alternatively, you can file your release of liability online at http://www.dmv.ca.gov.

5. If your vehicle sells for more than $500, or if it qualifies for a fair market value tax deduction, you will receive additional tax paperwork after the sale of the vehicle takes place. The amount you will be allowed to deduct on your taxes will vary depending on several factors which could include the price the vehicle is sold for or whether the vehicle is classified as a fair market value car donation.

6. One last point we should mention is that if you plan to claim your car donation tax deduction on your 2012 taxes, you need to make sure you donate the car well before the deadline of December 31, 2012. The charity should have possession of the vehicle before midnight on December 31st, or at least have the pickup well in the works, in order for you to claim your tax deduction in 2012. Don’t wait till the last minute as there could be delays that could result in you being unable to claim the donation as a deduction for the current tax year.

If you have any further questions related to your car donation tax deduction, most charities are relatively knowledgeable about the process and paperwork needed, however, you should consult a CPA or accountant for specifics regarding your particular tax situation.

For additional questions related to car donations in California, you can contact your local DMV or visit the California DMV website for the latest information on state specific requirements. 

Read more

Why you should donate a car

There are some of the older cars that you might just have sitting around the house or up by the garage. If you have a car that you feel is no good to anyone, you may want to think about doing something about them. Keep in mind that these cars don’t have to collect dust. You’ll want to keep in mind that there is a lot of time and energy to fix a broken car. Instead, you may just want to donate the car and get some benefits out it.

When it comes to these donations, you’ll want to keep in mind that these vehicles are worth more than you think. You’ll want to keep in mind that these donations do tend to give you a generous amount of tax deductions just for donating the cars for parts of scrap metal. You’ll find that all you have to do is pick out a charity that is willing to accept your donation. Then all you have to do is fill out some paper work and then the charity will have the car towed. With the towing, it is at no-cost for the owner.

You’ll also find that they will also take care of the title transfer and also you’ll be given a tax deductible receipt that will help you to show proof of the donation when it comes to tax time.

You will find that the benefits are great. You’ll be able to get rid of unwanted and unused cars. You’ll get a tax deduction. Finally, you’ll be helping the community.

Read more

When donate car have your title with you

When donating a car have your title with you

For those who wish to donate their car, you’ll need to bring your title with you so that they can prove that you truly do own the car. This is very important, because if the charity does not ask for proof of possession then they may not be a legitimate organization.

Truly, no charity will take the risk of being caught with a stolen car, so it is very important that you have a copy of the title with you when turning the car in. you’ll need to make sure that all the financial responsibilities have been met, so that the DMV will be able to transfer ownership. You’ll want to make sure that there isn’t a lien against the car, because you’ll need to pay for the lien before you transfer ownership. You’ll find that when you donate a car with a lien against it practically makes the car worthless.

When it comes to donations of this type, you’ll find that it includes things like motorcycles, trailers, boats, trucks, vans, cars, and so on. You’ll be able to sell some of the items that you do not want anymore, including some that don’t even run anymore. Most of the time, they will sell the item for parts or scrap metal. You’ll also want to consider that the organization has a right to deny you, as well. You’ll want to make sure that you offer then a title with the donation so that they can use the donation and find a value. Then you’ll be able to receive a tax break.

Read more

How to choose Donate Car to Charity

How to choose a charity for your car donation

You will find that process of donating a car to a charity happens to be a very easy and clear-cut process. You’ll need to choose the charity or organization and then they will help you feel out all the paper work. You’ll find that they will took information like your name, number, and address

When it comes to the charity, you’ll need to consider that there are times where the donation is arranged over the phone or in person. You’ll need to either drop off the car, or the charity will come and get the car for you. You’ll be able to get a receipt once the car is taken out of your possession.

As for choosing the right charity, you’ll find that it is very important that you meet all your needs before you end up giving the car up for donation. You’ll need to research the organization, but don’t forget, the internet can help you with your donation. You’ll need to look up tons of information and access many sites when you are researching the donation of a car.

You’ll also find that the websites of the organization can help you with your donation process as well. You’ll need to look up the FAQ section of the organization, because that will help you understand your state laws and also it will help you to understand a perspective tax deduction.

It is also important that you find out first if the car will be used by the organization or if they will sell it. This will help you to understand how much you will be able to get back for a tax deduction.

Read more