Question about TAX writeoff

[p0ntif]

Ok so i am moving in 5 months and have a lot of stuff to get rid of. My main question is this: Will I benefit more from donating my car and computers to a church for a tax writeoff, or will I benefit more from selling them for cash? Thanks for your comments!

 

[FoBoT]

those type of donations will only help if you already itemize and have lots of other deductions

so , unless you have lots of mortgage interest and other deductions, sell the stuff and keep the $

 

[Mr N8]

You get very little back on charitable contributions. You would most likely do better trying to sell it, and if it doesn't go, then donate it.

 

[p0ntif]

Can someone direct me to a site that explains this in further detail? And what happens if i donate them for more than they are worth? When does it become beneficial?

 

[EagleKeeper]

IF you donate the items, you can deduct the [b[fair[/b] market value. Ie. The hightest price that you can see it for sale at.
Make sure that you keep a copy of the item sale listing to prove you "valuation" to the IRS if needed.

If you already itemize, it may benefit you. Avoids the hassles of trying to sell the item.
If you do not itemize, you are better off selling the item unless you want a warm fuzzy. You will have to ignore the first $3-4K value of what you are trying to unload. Then based on your tax bracket, you then can only save on taxes roughly between 10-30% of the left over value.

Example.
Non-itemization

$6000 car.
-$3000 itemization level (estimated)

= 3000 tax deduction

@10% bracket = $300 extra in your pocket
@30% bracket = $900 extra in your pocket


Already itemizing

$6000 car.

@10% bracket = $600 extra in your pocket
@30% bracket = $1800 extra in your pocket