I am thinking about donating my car to the Salvation Army, how can I get the value back from taxes?

Answer 1

They've changed the rules for donating a car (I'm surprised as to how many incorrect answers there are for this question). I've attached a link regarding the correct info, and charitable contributions in general.

Cars, Boats, and Airplanes
The following rules apply to any donation of a qualified vehicle.

A qualified vehicle is:

A car or any motor vehicle manufactured mainly for use on public streets, roads, and highways,

A boat, or

An airplane.


Deduction more than $500. If you donate a qualified vehicle to a qualified organization and you claim a deduction of more than $500, you can deduct the smaller of:
The gross proceeds from the sale of the vehicle by the organization, or

The vehicle's fair market value on the date of the contribution. If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value, later.


Form 1098-C. You must attach to your return the copy of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle.

If you do not attach Form 1098-C (or other statement), you cannot deduct your contribution. You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. But if exception 1 or 2 (described next) applies, you must get Form 1098-C (or other statement) within 30 days of your donation.

Exceptions. There are two exceptions to the rules just described for deductions of more than $500.

Exception 1—vehicle used or improved by organization. If the qualified organization makes a significant intervening use of or material improvement to the vehicle before transferring it, and you claim a deduction of more than $500, you generally can deduct the vehicle's fair market value at the time of the contribution. But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value, later. The Form 1098-C (or other statement) will show whether this exception applies.



Exception 2—vehicle given or sold to needy individual. If the qualified organization will give the vehicle, or sell it for a price well below fair market value, to a needy individual to further the organization's charitable purpose, and you claim a deduction of more than $500, you generally can deduct the vehicle's fair market value at the time of the contribution. But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value, later. The Form 1098-C (or other statement) will show whether this exception applies.

This exception does not apply if the organization sells the vehicle at auction. In that case, you cannot deduct the vehicle's fair market value.

Example.

Anita donates a used car to a qualified organization. She bought it 3 years ago for $9,000. A used car guide shows the fair market value for this type of car is $6,000. However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Neither exception 1 nor exception 2 applies. If Anita itemizes her deductions, she can deduct $2,900 for her donation. She must attach Form 1098-C and Form 8283 to her return.

Deduction $500 or less. If the qualified organization sells the vehicle for $500 or less and exceptions 1 and 2 do not apply, you can deduct the smaller of:
$500, or

The vehicle's fair market value on the date of the contribution. But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value later.


If the vehicle's fair market value is at least $250 but not more than $500, you must have a written statement from the qualified organization acknowledging your donation. The statement must contain the information and meet the tests for an acknowledgment described under Deductions of At Least $250 But Not More Than $500 under Records To Keep, later.

You would end up reporting your deductible contribution on Schedule A - Itemized Deductions under non-cash contributions.

Answer 2

I got all information from the charity that I used for my donation but if your charity does not offer such information I recommend to visit http://get-tax-back.cardonatehelper.org

Have fun with your research and even more with the results of your donation - sharing just make more happy than anything else :)

Take care!

Tarsha

Answer 3

You won't get the whole value back, but you might get some of it.

In most cases, the Salvation Army will sell the donated car at auction. After it's sold, they'll give you a receipt for what they sold it for. This might very possibly be well below "market value". Your deduction on your taxes is whatever they sold it for.

If you itemize deductions, you would list the car donation as a charitable deduction. So if they sold the car for $2000 and you are in a 15% bracket, your taxes would be lower by as much as $300.

If you don't itemize, you get no tax benefit from the donation.

Answer 4

Yes, Wonder, we usually make a decent donation every year to the Salvation Army of money, clothing and when we go by something new, we donate any old furniture that is in good shape. We've donated an old computer to a women's shelter called The Bridge Over Troubled Water, as well. And yes, we will donate to the BFF's jerky boyfriend's fun as long as the man doesn't come back while he's drunk and beat your BFF. We draw the line when it comes to 'spousal' abuse. If she just wants to get rid of him, maybe she can buy him a one-way bus ticket to Mongolia! Ummm, a pet beaver? Sure, as long as you say this is going to a good cause, I am always willing to help those whom are less fortunate than us, Wonder Cat. *shakes her head cause she's so gullible.* *Softly pets the kitty, tells Wonder that he doesn't need to cry and that I'm here for him as long as he doesn't scam me!*

Answer 5

As part of the job creations act of 2004 the government tightened up reporting of car donations.The charity must take your social security number along with the donated car.They then have up to 30 days after it sells to tell you how much they got for it.You can only deduct the gross return from the sale.So if the Kelly Blue Book value is $2500.00 but the charity only got $800.00,you can only deduct the $800.00.

Answer 6

Check the tax laws at Irs.gov to see if there's anything you need to get (a form or something) then get a receipt from the S.A. when you donate it.

If I understand the rules correctly, I believe there is a limit to the amount of credits for donations you can claim each year, so make sure you find that out first

Answer 7

PepsiLime has the right answer. I volunteer with a similar program, so I have become very familiar with the rules and the 1098-C.

Answer 8

You just deduct the value of the car ( or the percentage that the IRS allows you to deduct) when you fill out your income tax forms.

BE SURE to get a written something or another ( receipt? charity receipt?) from the charity when you give them the car - else, you can't deduct anything. these days, most charities will just give you a piece of paper with their name, the date, what you donated. Very few put a value on what you donated.

Answer 9

http://www.charityboats.org/ offers appraised-value deductions on select boats. That means if you boat is appraised at $54,000, that will be the same amount for your deduction. They don't fire sell like other charities, but instead protect the donors interests. Awesome charity.

Answer 10

They will issue a receipt for the fair market value of the car (this is usually more than you would've gotten if you tried to sell the car on your own) Simply declare the amount of the charitable donation on your income tax return, and if asked to do so, simply present the receipt.