2006-10-15 16:52:43 · 5 answers · asked by Cris 1 in Business & Finance ➔ Taxes ➔ United States
Begining in 2005, If your car is valued over $500, you must attach copy B of a 1098-C to your return, or the IRS will disallow the deduction. Your deduction is generally limited to the gross sales proceeds recieved by the charity on the sale of the vehicle, even if you can substantiate a higher fair market value. As of the amount the contribution benefits you by: it matters what your tax bracket is:IE:
25% tax bracket , a donation of $1000 reduces your taxes by $250.
2006-10-15 18:05:54 · answer #1 · answered by RamsGod 3 · 3⤊ 0⤋
Thank you RamsGod, once again, for setting the record straight.
My neighbor just donated a car and when the charity sells the car they are going to send him a letter designating the sales price. That is the amount he will be able to deduct as a charitable contribution.
2006-10-16 11:57:36 · answer #2 · answered by porkchop 5 · 0⤊ 0⤋
That depends on how much your "adjusted Gross Income" is before you subtract the donation.
The amount you save will be based on the tax bracket you're in(This dictates the percentage of your AGI you pay).
The more you make, the higher percentage of tax you pay, the higher dollar amount you'd save.
2006-10-15 23:58:58 · answer #3 · answered by Doug E. Doug 4 · 0⤊ 0⤋
Don't know a whole bunch about it.. But.. The first thing I would do .. Is jack up the price of that car, and trailer.. to around 7 thousand buks! Then.. Ya might get 5 buks on your return.. but I doubt it.
2006-10-16 00:49:01 · answer #4 · answered by mr.longshot 6 · 0⤊ 4⤋
Taxman will be hard-pressed to accept your valuation.
S/he could say: Why did you not sell it and donate the cash.
Just a thought.
Hope it works out for you.
2006-10-15 23:59:25 · answer #5 · answered by Smilin' Fred 4 · 0⤊ 2⤋