Can I donate a vehicle and have my father claim the deduction?

Question

Hello,

I have a car I am considering donating before I move out of California. My dad (who lives in Pennsylvania) bought me the vehicle several years ago, and put me under his insurance, but it was not registered in his name. Since I may not benefit from the tax deduction (I heard it's better for people with mortgages or other expenses), would I be able to donate it and give the proper forms for my father to claim? Would it matter that my dad lives in a different state than me?

Thanks in advance.

Answer 1

Your father doesn't own the car, your father doesn't get the deduction. You can try having him claim it, but if you both get caught, it's tax fraud. Plus, the IRS changed the rules for a car donation, now you get a donation for what the group you donate to actually sells the car for.

Answer 2

No, only the person who actually owns the vehicle can claim a deduction for it. The fact that he paid for it originally doesn't matter.

You could give the vehicle to him and transfer the title, then let him donate it - but the amount of taxes he'd save would probably not be worth going through all that. The deduction is only what the organization actually sells the car for, and is usually less than market value, sometimes considerably less. Then the taxes saved depend on the person's tax bracket.

Answer 3

Boston is right.

The car has to be in your father's name. And, the donation is losing it's value.

However, there are still ways to accomplish the desired deduction. But, that is a questionable logic too, considering your goal of helping your father.

If you truly want to donate the car do it. If you want to help your dad..sell the car and send him the money to pay on his taxes.
Somewhere between the two is the answer that is right for you. And it is up to you to decide what you want to do.

Remember a deduction is just a percentage. And if you haven't used the car in a business you shouldn't have a gain to pay tax on yourself.

Answer 4

No, only you can get any benefit from the donation.

If you give the vehicle back to your Dad, he could then get the benefit from the donation.

Vehicles make lousy donations now that the rules have been changed. That's true for both the donor and the charity that receives it. You'd do better for the charity to sell it yourself and give them the proceeds in cash. MUCH less bookkeeping and other hassles to deal with all around.

Answer 5

You would have to sell the car to your father and have him donate it.