car donation

[ER_Hopeful]

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?

 

[pb4uski]

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).

 

[MichaelB]

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.

 

[CardsFan]

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.

 

[ER_Hopeful]

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.

 

[mickeyd]

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.

 

[ER_Hopeful]

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?

 

[bjorn2bwild]

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

 

[Whisper66]

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.

 

[Texas Proud]

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...