Earlier this year, I donated my old vehicle. How do I claim this on my taxes.?

Answer 1

Starting with this year, the rules for a charitable deduction for donating an autombile has changed. Rather than automatically being able to deduct the value of the car, your deduction is limited to whatever the charity gets for the car (if the charity sells the car). For example, if the car's blue book value is $10,000, and the charity sells it and can only get $2,000 for the car, your deduction is $2,000. If the charity keeps the car for their own use, you can then deduct the fair market value of the vehicle.

Answer 2

If you itemize your deductions you MIGHT be able to claim that as a charitable deduction. The rules on vehicle donations have been tightened significantly. You only get a deduction if the charity sells the vehicle. You are able to deduct whatever the charity received from the sale. They must send you a letter telling you how much that was.

Unless the value of the vehicle plus your other deductions exceeds $5,150 (single filer) or $10,300 (married filing jointly) you won't get any tax benefit from the deduction.

Answer 3

you should have gotten a donation slip. They should indicate the donation value. You used to be able to use the Blue Book value but now it is what the charity gets for the car.

You can't just deduct whatever you want or what you THINK the car was worth - itemized/charitable donation

Answer 4

Did you recieve a form with the Employer ID number from the company you dontated the car to. If not you will probably not be able to. See a CPA and they will give you the correct form.

Answer 5

we did that last year and the church wouldnt give us a receipt so our tax preparer took out his blue book and looked up the car. he says the title work would show evidence of the change in ownership and the price on the title as being a gift.

Answer 6

charitable contribution , like you gave it to a church for transportation for a woman that needs transpo for taking kids to school dmv doesn't care as long as you took your name off as registered owner

Answer 7

When contemplating making a significant gift, the charitably inclined are well advised to exercise some foresight. Similar gifts made in different ways will yield remarkably different results.

The treatment of your gift for federal tax purposes will vary depending on the type of asset donated, the type of charitable organization receiving the gift, and your individual circumstances and overall tax status.

Asset Classification
Gifts funded with different types of assets are subject to different restrictions on deductibility.
The Internal Revenue Code (IRC) generally classifies different types of property according to a four-tier system, consisting of: 1) ordinary income property; 2) short-term capital gain property; 3) long-term capital gain property; and 4) tax-free property. Property is also classified as either being intangible property (securities, bonds, mutual funds, etc.), or tangible personal property (artwork, collectibles, jewelry, etc.).

Types of Charities
There are also deductibility limitations imposed on donations depending on the structure of the recipient charities, which fall into two general categories:

Public Charities
So-called public charities include organizations such as the Red Cross, most religious organizations, schools, and hospitals. This category also includes operating private foundations that actually directly engage in charitable activities (as opposed to simply making grants), and "pass-through" foundations that distribute their gifts and income promptly.
Private Foundations
This category is far more restricted because of concerns relating to the potential for abuse by donors or foundation officials.
Valuation and Eligibility
Donors must categorize their donations in accordance with the above classifications in order to determine the valuation of their gift for the purpose of claiming a charitable deduction. Consider the following:

Gifts of cash (including by check) are simply equal to the amount of the gift.
Gifts of tangible personal property that can be directly used to advance the recipient charity's tax-exempt purpose, or gifts of long-term appreciated intangible property are eligible for claiming a deduction based upon the fair market value (FMV) of the donated asset.
Gifts of tangible personal property not for exempt use, short-term appreciated intangible property, or ordinary income property are eligible for claiming a deduction based on the original cost (less depreciation) or fair market value of the donated asset, whichever is less.
There are also additional limits on gifts of real estate, which may be reduced by any "depreciation" deductions taken over the years. In this regard, property placed in service before January 1, 1987-in some cases-could yield a higher deduction than property placed in service after that date. You are simply not eligible to claim a deduction at all for contributing personal services to a charity or letting a charity use your property rent-free.

Making gifts of stock to a private foundation entails additional hazards, with different standards applying to gifts based on the incorporation status of the company. Gifts of publicly-traded securities are the least restricted with fair market valuation, while an underlying structure other than C corporation status may limit your deduction to only your original cost. Gifts of stock in a privately-held company to a private foundation can, in fact, cause the foundation itself to owe taxes when it sells the stock.

Any single contribution exceeding $5,000 (except one funded with cash or publicly-traded stock) requires a qualified appraisal within 60 days of the date of gift. All gifts of $250 or more require written acknowledgment from the recipient charity in order to claim a deduction, though it is undoubtedly prudent to obtain a receipt for gifts of any size.

Income Limitations
The final factor affecting your ability to claim a charitable deduction pertains to limitations associated with the size of your adjusted gross income (AGI). Your deduction for gifts of cash to a public charity may not exceed 50% of AGI in any one year, while your deduction for cash gifts to a private foundation may not exceed 30% of AGI.

For gifts of both long- and short-term appreciated property, your deduction is limited to 30% of AGI for gifts to public charities and 20% of AGI for gifts to private foundations. The limitations on both cash and appreciated property work in tandem, capping total charitable deductions for any one year at 50% of AGI. Deductible amounts above these limits may be carried forward for up to five additional, consecutive tax years. Higher income donors must also be wary of restrictions on total itemized deductions, which are gradually phased out above certain levels of AGI.

Seek Counsel
The only conclusion one can draw with certainty: If you intend to make a charitable gift that you consider to be significant, the assistance and counsel of a qualified tax professional is vital to successfully navigating the murky waters of charitable tax law.

Good luck to you!