Car donation?

dereksbicycles

dereksbicycles

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I'm aware that many people have donated car(s) to non-profit organizations. Have you done this or know someone who did? I'm wondering how donation works. Let's say I donated a car to a non-profit organization. They sell it for $1500. Now I can claim $1500 off my taxes. So, is that same as me selling it myself for $1500? Either way, I get $1500. I understand that those non-profit groups will auction your car. Therefore, you're at mercy of what a car goes for at an auction. Is that correct?
 
dereksbicycles said:
I'm aware that many people have donated car(s) to non-profit organizations. Have you done this or know someone who did? I'm wondering how donation works. Let's say I donated a car to a non-profit organization. They sell it for $1500. Now I can claim $1500 off my taxes. So, is that same as me selling it myself for $1500? Either way, I get $1500. I understand that those non-profit groups will auction your car. Therefore, you're at mercy of what a car goes for at an auction. Is that correct?
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I believe it depends on states and the taxes. I once considered donating my old suv to one of the organizations. Was told I probably won't get much with the tax write off. I ended up sold to the dismantler for $400 since it is pretty much junk with a lot of work needs to be roadworthy.

You should inquire with organizations and tax advisor before you donate.

Tips for donating a car
 
We donated our previous work van. It was drivable at the time but probably better for scrap metal. Using book value for calculating the tax deduction is probably a good number.
 
See if IRS would get you just like what they did to Tea Party. I bet it's gonna be dramatic on news!! :eek2: :rofl:

Catty
 
I have done it. You have to call a organization and tell them what you want to donate. If they do a phone accept, then they will make arrangements to get it. You must have title to car, and be ready for them. Be sure you get a receipt. I also would take pictures of person towing car away with picture of condition. Also print out the KBB value from online before they take it so if IRS calls you in to prove the value, you can. You only get what value what charity sells the car for.

If you take the standard itemization on 1040, then its not worth your time to donate the car. If you do the long version and have enough itemized deductions to put on your taxes, remember - you are NOT taking a full dollars off from exact taxes you owe. Lets say the car is worth 1000 bucks according to KBB value and you do it on taxes, then you might see 100 off from your taxes.

If you are on disability income - and you are healthy, single, I dont see the point donating your car. It's not a money saving thing you can do. If you are married, with a mortgage, kids, maybe with medical expenses, then it makes sense to donate if you need to get rid of a car and it goes to your favorite charity. Otherwise.... forget it.
 
ok reba -- I am stereotyping a little bit -- but I can tell you that most people on disablity income AND no medical expenses most likely do NOT need to itemize - do the income levels and such. The probability is somewhat higher then 50% correct in my statement, and those in less then 50% will probably be able to itemize deductions in order to make the car donation worth it on taxes - but even if you do- like I said before, you will probably get less then half of what the car is worth after they do their irs formula.
 
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