Anyone donated car to charity?

[Murpheeee]

I am considering donating my old car for a tax deduction.

Anyone know how they evalaute fair market value? Is it KBB Retail, private party value or trade value?

 

[SaintGRW]

ebay it

 

[morkinva]

retail.

at least that's what i claimed on my tax return.

 

[Parrotheader]

My wife's family did this before she graduated college. They got her a new car and instead of using the old one as a trade in toward the down payment, they donated it to a local charity. I can't remember what value they claimed it as for their taxes though. Even if it had been retail though, the value still probably would have been less than what they could have got for trade-in value. I'm possibly thinking of doing this with my car whenever I get a new car. I might not get quite as much direct value from it, but since my car will be valued so low anyway it'll probably only be the difference of a few hundred dollards and I can feel a little better about it since it still runs great, it just have a few dings and scratches that would probably make no one ever buy it.

 

[RaySun2Be]

We donated a Dodge Caravan to charity, and I believe they attached the KBB (Kelly Blue Book) value, adjusted for mileage, options. etc.

One thing to be sure to do. Check to see if you are actually donating the vehicle to the charity directly, or if there is a broker involved. If there is a broker, try to find out how much of the proceeds actually get to the charity. IIRC, there may be some tax issues with claiming the full retail value as a donation when the charity actually ends up with far less due to broker "fees".

 

[Zebo]

Is it KBB Retail, private party value or trade value?


How honest are you? I've given 4 cars to catholic charities over the years, all junkers but still running, and declared less than $600 on each of them. Far less than KBB but what I felt I could sell it that day for since they'll take it same day and I was tired of it sitting in the driveway. You can declare PPV without drawing a red flag.

 

[Murpheeee]

Is it as simple as getting the value towards your taxes.....
e.g., if you were to be due $1000 in taxes and you donated a $1000 car...you are all square....or is it more complicated than that.....

I assume it probably is, depends on tax brackets etc....

 

[Evadman]

Originally posted by: Murpheeee
Is it as simple as getting the value towards your taxes.....
e.g., if you were to be due $1000 in taxes and you donated a $1000 car...you are all square....or is it more complicated than that.....

I assume it probably is, depends on tax brackets etc....

The amount you donate is removed from your income, not what you pay. So you will get about 25% or so off what you owe. DEpends on your tax bracket.

 

[dullard]

I haven't done it, but a few of my friends did. They just took it to a local used car dealer who was willing to put an estimate in writing with his signiture. Of course the dealer put the full retail price that he would get (not what my friends would get if they sold it to the dealer). If you can't find a dealer, maybe a mechanic will be willing. I'm sure no one will check up as long as it isn't obviously wrong (such as $20,000 for a beat up 1980's vechile). But still just a little note is a good backup plan (especially if you claim something a touch higher than the KBB value, for a car in great condition).

 

[Stifko]

We did it and got $1500 for a POS 84 Chevy Caprice. I mean my Dad got a $1500 tax discount or whatever ya call it.

 

[thedarkwolf]

Originally posted by: Evadman

Originally posted by: Murpheeee
Is it as simple as getting the value towards your taxes.....
e.g., if you were to be due $1000 in taxes and you donated a $1000 car...you are all square....or is it more complicated than that.....

I assume it probably is, depends on tax brackets etc....

The amount you donate is removed from your income, not what you pay. So you will get about 25% or so off what you owe. DEpends on your tax bracket.

That depends. My dad donated a 93 taurus with a blown trans for I think $2500 and in Wv thats a $2500 tax credit for state and a $2500 tax deduction for Federal. The state has a limit of how many they will take but thats how he told me it works here.

 

[Crab cake]

Charities ususally don't put a value on donated items. A receipt is all you get from them. The value of the donation is entirely up to you. The only thing between you and the value of your donation is an IRS audit. I donated a car that had a Blue Book value of $1800 last year to the Red Cross. That donation netted me about $650. That's roughly 37% of the value of the car, which by the way, is also my tax bracket.

Most reputable organizations don't take in junks. The Red Cross won't accept any cars that aren't current on the registration.

 

[db]

The only advantage to this is convienience--someone takes your car away and you're done with it.
Money-wise it's not a smart move b/c you're not getting that much money/tax reduction in exchange for the car.
It's better to sell it, then if you want give money directly to your charity.