2006-12-25 17:45:03 · 6 answers · asked by ApplicantX 2 in Business & Finance ➔ Taxes ➔ United States
Usually the charity that receives a donated car sells it. The charity will send you a form 1098C indicating the proceeds of the sale. You are allowed to deduct that amount.
If the proceeds are less than $500 then a 1098C is not required and you deduct that amount.
If the charity uses the vehicle for its own purposes, or gives it for free or for less than its sale value to a needy individual, then the charity will send you a statement that you are allowed to deduct the fair market value.
2006-12-25 19:39:47 · answer #1 · answered by ninasgramma 7 · 4⤊ 0⤋
I was told by a CPA that you can only deduct $500 worth of donations in any given year, are cars treated differently?
2015-01-26 06:25:54 · answer #2 · answered by sazarac@sbcglobal.net 2 · 0⤊ 0⤋
They deliver you a 1098-C exhibiting the quantity the vehicle bought for. till somebody somewhat needs it, the 1098-C has a tendency to be low-ball quantity. in no way the KBB fee. The 1098-C got here into existence because of the fact the IRS observed that taxpayers have been attempting to deduct, say, $10,000 whilst the charity basically have been given $2000. understanding that wasn't honest and that many human beings have been the two cheating or taking the uncomplicated way out, you presently get to deduct the quantity the charity have been given. whilst you're already itemizing, discern 10-15cents on the dollar. in case you incredibly think of the vehicle is properly worth $4750, sell it, donate $1000 and shop something.
2016-10-28 09:19:32 · answer #3 · answered by quinteros 4 · 0⤊ 0⤋
You used to be able to take the Kelly Blue Book Value of the donated car as a tax deduction. Legally... I think you still can... ethically... I think that a value approximating what you could realistically sell the car for is more in order. NADA blue book price for the car in as close to its' listed condition.
2006-12-25 18:00:01 · answer #4 · answered by Jay M 4 · 0⤊ 2⤋
If you donated it to a tax-deductible organization (AKA a 501 C3), you should be able to use is as a deduction at its fair market value. Consult a professional tax preparer or CPA if you're still not sure.
2006-12-25 17:54:40 · answer #5 · answered by swttxlady 2 · 0⤊ 2⤋
Ninasgramma has given the most up-to-date advice. Please follow it. Do not base your deduction on any other method. The rules are now very specific.
2006-12-26 00:44:53 · answer #6 · answered by skip 6 · 1⤊ 0⤋