Donating a vehicle for tax deduction?

[Gmachine]

I've got a car with 260k miles that I'm trying to sell. It's in good shape, but the mileage scares people.

I looked into donating it & was linked to the KBB site. The fair mark value was spot with what I'm asking. This would be an easy way of getting some cash for the vehicle & helping out.

Any experience with this out there?

 

[Blaze]

I think you can only write it off for $500, but I may be wrong.

 

[Gmachine]

Ok, I'm an idiot. You don't get 100% back from deductions. Never mind.

 

[Gmachine]

Not what this says.
http://www.v-dac.com/cartalk/taxlegal/taxes.html

 

[RatLabGuy]

yeah you only "get" 25% or whatever your bracket is.

Plus IIRC there is now a stipulation that if it goes to a charity that is just selling it themselves, as opposed to using it, you only get to claim the amount they get after they sell it, not what it's valued at now.

 

[nctom]

They need to change thier name from IRS to URS...
U R Screwed.

 

[transman731]

i have bought 3 cars this month from customers that didn't want to repair them. they were going to donate them, but $500 is the maximum write off they can get for their donation.

 

[CjDave82]

I donated a vehicle several years ago. My understanding of the deduction was this:

You donate a vehicle and get a receipt for $475, but the fair market value is $575, you get a $500 deduction.

You donate a vehicle and get a receipt for $1250(or any amount over 500), you get a deduction for $1250(or anyamount over 500)

USE A REPUTABLE CHARITY!!!! We used Goodwill. One call and they came and got the car. Always a worthy cause IMHO

Video:
http://www.youtube.com/watch?v=jMPm7Pua5Pc

IRS Publication:
http://www.irs.gov/pub/irs-tege/pub4303.pdf

 

[cj777]

You can write off more than $500. Here's the official IRS publication on car donation. http://www.irs.gov/pub/irs-tege/pub4303.pdf

 

[rodney eppes]

I just read thru cj777s, web site. Only way I'd go to that much trouble, If I were Donald Trump! The "Charity thing", has been confused, as I was ,for ever. Your told "it's 100% deductible"! That's true! But, they don't tell you, you can only get credit, [real money] the % of your tax bracket. On my recently donated Cherokee, fair market $1200, I may get 25%. But, since it was Raffled, I think I can only claim 25%, of the $700 ticket sales. Be lucky, if I can split the difference. I'll let my tax preparer handle that!

 

[RatLabGuy]

yeah, keeping in mind that there are junkyards that will pay $400 or more for a complete car, you'd have to be getting a deduction of at least $1600 (if you're taking off the 25% bracket) or more than $2600 if in the 15% bracket for that to be better than just scrapping it...

 

[Pinhook]

Hell, what kind of car...I don't see it posted here...
My Volvo has 260k and she keeps on tickin'