How easy or complicated is it to write off a donated vehicle on my taxes?

Question

I hear tax laws have changed regarding writting off donated vehicles. I mean, how bad can it be? If anyone experienced something like this let me know, or know much about the laws on car donations etc.

Answer 1

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.

Answer 2

You can only deduct charitable contributions if you itemize.

And yes, the rules on how much you can deduct have changed. If the charity sells the car, which is usually what they do with donated vehicles, you can only deduct what they sell it for, not fair market value as in the past.

Answer 3

Throw your stuff in a bag and bypass to the closest Goodwill drop off station. once you supply them your stuff, ask for a receipt. you will get a purple slip which you ought to fill out, the place you ought to VERY generally checklist APPROXIMATE fee (modern-day situation). shop the receipt to your 2008 taxes in case you ought to tutor which you certainly made the donation (no longer likely). in case you document an EZ 1040, then you definately don't desire a receipt as long because of the fact the greenback fee does not exceed $two hundred (i think - or some thing like that). yet something over that, think ofyou've have been given to itemize the deduction/write-off on a schedule C. Take this with a grain of salt because of the fact i in my opinion do no longer comprehend the thank you to do tax stuff - yet i comprehend deductions and write-offs are component of the schedule C. do no longer bypass loopy on the greenback fee of your products- that would deliver some crimson flags to the IRS. in many circumstances, if I supply a large rubbish bag of clothing, I say it is relatively worth $a hundred and fifty. The write off isn't extensive, with the aid of all ability, yet each and every so often merely with the flexibility to offload your stuff someplace and get a sprint tax wreck from the gov't is plenty much less stressful than sitting on your driveway all day haggling with people who want to purchase your outfits for 25 cents at your storage sale. i do no longer comprehend the place you reside, yet there is likewise purple heart and Salvation military, additionally St. Vincent De Pauls - seem them up interior the yellow pages - they actually come on your place and %. it up for you, and supply you a receipt, as nicely.

Answer 4

You used to be able to write off fair market value for the vehicle. Now you can only write off what the charity actually sells it for.

Answer 5

It got more involved because there are new rules to follow in terms of how much you can write off (not as much) and the recordkeeping requirements...see IRS.GOV