How much can I deduct for taxes if I donate my juck vehicle?

Answer 1

If it's a junker, just take it to the junkyard.

To get a deduction for donating a vehicle, the current rules limit it to whatever the charity sells the vehicle for. Since it's a junker, most charities are not interested since they'd have to drag it to the junkyard to get anything for it. Most junkyards will pick up a junker for free -- the tow charge and junk value wiping each other out -- leaving the charity with zilch.

If you want to do something for a charity, junk it yourself and donate the $50 or $100 you get to the Red Cross or Salvation Army. At least that way they'll get something.

Whether or not you will get a deduction depends upon itemizing your deductions. If you don't itemize there's no benefit for you. Your deductions must exceed your standard deduction to make itemizing worthwhile. For a single taxpayer, your standard deduction for 2007 is $5,350. If your donation is your only itemized deduction you'd get no tax benefit from it.

Answer 2

If you could sell it for less than $500, if you donate it you can take the fair market value of less than $500 on your Schedule A. You need documentation that you gave it to the charity.

If the charity sells it and gets $500 or more for it, they will send you a 1098C indicating the amount of the sale. You will then deduct that amount on your Schedule A, you cannot deduct the fair market value if it is more than the sales price.

If you do not receive a 1098C from the charity, then your deduction is limited to the fair market value which will be less than $500.

Answer 3

If it's junk, probably nothing.

If you could find a charity to take it, your deduction would be limited to what they sell it for, and that's usually at auction (if the vehicle is decent). If they just junk it, then they wouldn't get much if anything - if they got $50 for it your tax benefit if you are in a 15% bracket, would be $7.50, hardly worth the effort to go through all that. You might as well just junk it yourself.