I heard, and i've seen many advertisings about donating cars even while i'm driving.. the thing is that i have this other car, which needs a few repairs, but i wouldn't want to spent any more money on it i heard that if you donate your car, you can put that down for your income tax return.. and i was wondering if anybody that have done this before.. about how much money did u got back for it?
2007-01-09 10:40:44 · 12 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The simple answer is the fair market value of the car. The complications arise in how fair market value is determined. If the charity sells the vehicle, the IRS considers the sale price to be the fair market value. I the charity actually uses the car, you can usually claim the 'blue book' or 'nada' value. That is basically the published average value of similar vehicles. The cost of needed repairs may reduce the value you can claim.
As the answer above implied, charitable donations are an itemized deduction and only reduce your taxes if you itemize.
2007-01-09 11:13:19 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Typically the charity will sell the car at auction and use the money for other projects. They will send you an a statement on the amount it sold for; that is the amount you can use on your taxes, provided you can itemize (schedule A).
My understanding is that you can no longer use blue book, expert opinions/estimates or other such methods for determining the value of a donated car. That is a change that went into place in the past few years.
2007-01-09 10:45:34 · answer #2 · answered by azohawk 3 · 1⤊ 0⤋
There is a cap on how much you can deduct from donated items. I think it is in the range of $500. I think a car fits into this category. I donated a few thousand dollars of clothing when my mom died. It wasn't worth much at tax time.
Cash donations are fully deductable if you itemize. It might be better to sell the car and donate the money if you want to help the charity and get a better tax benefit.
2007-01-09 10:47:48 · answer #3 · answered by Automation Wizard 6 · 0⤊ 3⤋
No and the only factor that ought to in all threat be a tax return could be the tax type 1040 and schedules which you may ought to fill out properly and carefully in case you have been required to realize this are in case you purely pick to fill out and report a 1040 federal earnings type return as your properly carried out earnings tax return and submitting it soliciting for an quantity of REFUND of any withheld federal earnings tax that ought to have been withheld from any earned earnings which you will have gained out of your business enterprise that replaced into pronounced to you on your W-2 type after the tip of the tax year 2010. wish which you come across the above enclosed tips functional and good success to you.
2016-10-06 22:02:01 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You can used the tax value and a tax deduction - but it is to late to donate for 2006!@~
2007-01-09 10:48:42 · answer #5 · answered by nswblue 6 · 0⤊ 0⤋
It all depends on your tax bracket and the blue value of the car
I donated a car and received a $700 break
2007-01-09 10:47:52 · answer #6 · answered by Anonymous · 1⤊ 1⤋
You will get a deduction as a charitable contribution for the fair market value of the car, or how much the charity sells the car for.
2007-01-09 10:44:41 · answer #7 · answered by jseah114 6 · 1⤊ 1⤋
sounds like you're probably in the "EZ" zone...donating crap gets you a crap value to claim...if you itemize - which you won't! ...because you're poor. Unless your donating a car worth $8,500 you won't beat the $8,450 the Gov is giving as standard deductions for the unwashed...sell it for scrap.
2007-01-09 11:00:18 · answer #8 · answered by (_)iiiiD 4 · 0⤊ 0⤋
Check on irs.gov for information on car donations.
2007-01-09 10:47:42 · answer #9 · answered by kearneyconsulting 6 · 0⤊ 0⤋
You deduct the blue book value from your taxable income.
2007-01-09 10:44:59 · answer #10 · answered by Anonymous · 0⤊ 2⤋