tax question (donating car)

[PatrickBateman]

Getting rid a 94 Ford Tempo beater(yeah yeah I know...). NI general, are we better off trying to sell it for $500 or donating it to an animal shelter and getting a tax deduction?

 

[Mermaidman]

You're only getting a deduction and not a credit, so I'd donate for altruism (and convenience) as opposed to financial gain. I don't remember if you have to itemize your deductions in order to benefit from charitable donations. If the standard deduction is higher, then you'll not see ANY benefit from the donation.

Check with the experts here: http://forums.anandtech.com/messageview...atid=38&threadid=1981972&enterthread=y

 

[j00fek]

http://forums.anandtech.com/messageview...atid=38&threadid=1981972&enterthread=y

 

[Canun]

Originally posted by: Mermaidman
You're only getting a deduction and not a credit, so I'd donate for altruism (and convenience) as opposed to financial gain. I don't remember if you have to itemize your deductions in order to benefit from charitable donations. If the standard deduction is higher, then you'll not see ANY benefit from the donation.

Check with the experts here: http://forums.anandtech.com/messageview...atid=38&threadid=1981972&enterthread=y

You have to itemize, and anything 500 or over non-cash has to have all information included with the return this year.

 

[MercenaryForHire]

batemanoutoff*ckingnowhere.jpg

:broly:

- M4H

 

[DougK62]

Sell it.

 

[FoBoT]

you can't inflate the price anymore, you only get a deduction on fair market value, so as stated above, donate only if you want to help some cause, otherwise sell it for whatever $ you can get, you'll get more $ that way than from a tax deduction

 

[mugs]

Hmmm... $500, or $500 * marginal tax rate...

 

[SoulAssassin]

Originally posted by: DougK62
Sell it.

Definitely. Also you can only deduct the actual value it sold for so the only advantage is not having to sell it yourself. If you know someone with a 16-17 year old just getting a license see if you can sell it to them or find a crappy corner dealership and sell it to them.

Or you could always push it in a lake and report it stolen.

 

[ElFenix]

Originally posted by: mugs
Hmmm... $500, or $500 * marginal tax rate...

it's more like $500 - hassle of selling, or $500 * marginal rate

 

[mugs]

Originally posted by: ElFenix

Originally posted by: mugs
Hmmm... $500, or $500 * marginal tax rate...

it's more like $500 - hassle of selling, or $500 * marginal rate

You are correct sir.