Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
car donation
Old 02-26-2017, 01:07 PM   #1
Recycles dryer sheets
 
Join Date: Sep 2007
Location: near L.A.
Posts: 197
car donation

thinking about donating my 1997 pathfinder in running condition, (did try to sell it on craigslist but met some real low life)

never done it before so would like to get some low down on it. seems like I need to wait until they've sold the vehicle and mailed me a statement indicating the sales amount, then I can claim a tax deduction this year, is that correct?

So if they sold the vehicle for $2k and my marginal tax rate is 28%, I get a tax saving of $560, yeah?
__________________

ER_Hopeful is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-26-2017, 01:15 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 21,990
Actually they give you a receipt for the estimated fair value and you deduct it.

I did it once and the fair value that they put on it was a lot lower than what I expected... but it did have some issues and needed some work

Yes, if the value is $2,000 and you are in the 28% tax bracket and itemize then your itemized deductions would be $2,000 higher, your taxable income would be $2,000 lower and you would save $560 in tax (but only if you already have itemized deductions that exceed the standard deduction).
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...60/35/5 AA
pb4uski is online now   Reply With Quote
Old 02-26-2017, 01:19 PM   #3
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 29,310
We did this last year with DM's car. A broker picked it up on behalf of our designated charitable organization, it was sold at auction, and we received written confirmation of the price, which was the allowable deduction.

If you give the auto to an organization and they choose to use it instead of selling, you can deduct market value.
MichaelB is online now   Reply With Quote
Old 02-26-2017, 01:25 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: St. Charles
Posts: 1,274
The IRS rules have changed on this over the years. We donated 2 cars under the old rules. In those cases we could deduct fair market value. I used Kelly's Blue book I think.

Now, as I understand, you do need to wait until the car sells at auction, and that is your deduction. Of course, now, retired with a paid off mortgage, it doesn't matter to me, as I take the standard deduction.
__________________
If your not living on the edge, you're taking up too much space.
Never slow down, never grow old!
CardsFan is online now   Reply With Quote
Old 02-26-2017, 01:31 PM   #5
Recycles dryer sheets
 
Join Date: Sep 2007
Location: near L.A.
Posts: 197
oh, I guess it won't help me much then since I've been using standard deduction past couple years. My mortgage interest got so low now ($1500/yr), I can't take advantage of itemized any more.
ER_Hopeful is offline   Reply With Quote
Old 02-26-2017, 01:38 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 6,194
Several years ago I donated my 15YO Camry to Society of St. Vincent DePaul. I was glad to get rid of it and they eventually sent me a receipt for $1800 (must have been what it auctioned off for.) Since I use the standard deduction, did not need the receipt.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 02-26-2017, 01:48 PM   #7
Recycles dryer sheets
 
Join Date: Sep 2007
Location: near L.A.
Posts: 197
Quote:
Originally Posted by mickeyd View Post
Several years ago I donated my 15YO Camry to Society of St. Vincent DePaul. I was glad to get rid of it and they eventually sent me a receipt for $1800 (must have been what it auctioned off for.) Since I use the standard deduction, did not need the receipt.
meaning you didn't get any tax savings from it, correct?
ER_Hopeful is offline   Reply With Quote
Old 02-26-2017, 01:56 PM   #8
Full time employment: Posting here.
bjorn2bwild's Avatar
 
Join Date: Mar 2013
Location: Western US
Posts: 886
In California, you could consider the Voluntary Accelerated Vehicle Retirement Program (VAVR). There are many different scenarios - ours failed the smog test, we took the $1000 basic incentive. Worth a look.

California Vehicle Retirement | DMV.org
bjorn2bwild is offline   Reply With Quote
Old 02-26-2017, 04:13 PM   #9
Full time employment: Posting here.
 
Join Date: Apr 2014
Location: Houston
Posts: 652
If you wanted to sell it without much hassle, could drop by a CarMax. They provide an offer in a few minutes. I sold my last SUV there. They bought it even though it had a slipping transmission and a stench from some chemicals that got spilled inside and never able to clean fully. The price was good (more than I expected) and they said they would sell it for parts so would buy it even with the issues it had.
Whisper66 is online now   Reply With Quote
Old 02-26-2017, 05:07 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 15,271
Quote:
Originally Posted by Whisper66 View Post
If you wanted to sell it without much hassle, could drop by a CarMax. They provide an offer in a few minutes. I sold my last SUV there. They bought it even though it had a slipping transmission and a stench from some chemicals that got spilled inside and never able to clean fully. The price was good (more than I expected) and they said they would sell it for parts so would buy it even with the issues it had.

CarMax will not buy a car that old...


You can put it on a sales lot that charges you a fee to do so... we have a number of them around here...

Or find someone that is willing to take it to auction for you... might charge a fee, but you will get more money than by donating it without any deduction...
__________________

Texas Proud is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bone marrow donation Khan Health and Early Retirement 54 07-06-2010 12:08 PM
Considered Organ Donation? RetireeRobert Health and Early Retirement 7 12-04-2007 10:13 AM
Donation Gifts TromboneAl Other topics 28 12-28-2006 06:30 AM
Unexpected Donation moghopper FIRE and Money 7 06-21-2005 10:34 AM

» Quick Links

 
All times are GMT -6. The time now is 12:54 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2019, vBulletin Solutions, Inc.