How much can you deduct on donated car?
I have a car in fair condition listed by Kelly blue book at 4750.00 for a private seller. Rather than try to sell it which I have no time for, I thought of donating it to the veterans or similar and deducting the private seller cost on my taxes. Can I do that and does it come off the top of my gross or is there some calculation done which decreases the direct amount? Has anyone done this and knows or is a tax accountant? If so, please advise and thank you very much ;-)
Asked By: Gclef - 10/17/2012
Best Answer - Chosen by Asker
Will not work out that way at all for this purpose and time in your life... More
Answered By: Bobbie - 10/17/2012
Additional Answers (7)
Your donation is whatever the charity gets for it. You will receive paperwork from them. It is an itemized deduction only. No itemizing no deduction. It lowers your taxable income. I gave mine to charity even though I could not deduct it because it was not worth much and I did not want to take the effort to sell it.
Answered By: Cathi K - 10/17/2012
The charity has 90 days to turn over the inventory so they tend to wholesale them out or send them to auction. They then send a form telling the donor how much the selling price was. This, and only this, is what may be claimed as a charitable deduction.
Answered By: RoBear - 10/17/2012
They send you a 1098-C showing the amount the car sold for... More
Answered By: Quick Answers - 10/17/2012
If the organization to which you donate it decides to sell it for less than the private seller cost, then you can only deduct the amount for which they sell it. You cannot deduct the Blue Book value unless either (a) they sell it for that much or more, (b) they keep it for their own use and do not sell it, or (c) the... More
Answered By: StephenWeinstein - 10/17/2012
The amount you can deduct is what the charity sells it for. They'd normally wholesale it, so it's likely to be less, maybe a lot less, than KBB numbers, and you won't know the number until they sell it. Then they're required to send you notification of what they sold it for, and that's what you use on your tax as a... More
Answered By: Judy - 10/17/2012
the organization you donate it to will give you a statement on their letterhead with their non profit number and the amount that you can claim as a charitable deduction... More
Answered By: tro - 10/17/2012
When you donate, they send you a 1099 for the amount they sold the car for. That is what you can deduct. You don't get to deduct the KBB value, only what the charity actually sells it for. Only then deductible if you itemize.
Answered By: Rick - 10/18/2012
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