- If I donate a car worth $8K to a charity and the charity auctions it for $10K, how much can I deduct for taxes?
- Does It Help Your Taxes When You Donate A Vehicle To Charity That Is Worth $5000.00? How Does It Work?
- If I donate a car now will I be able to write it off on this years taxes?
- How much of a tax write off do you get if donate a car to chaity?
If I donate a car worth $3000, how much can I write off in my taxes?
06
Apr
lisa b
April 6, 2010 at 12:38 am
$3000. A good way to get rid of a used car and not sell it yourself. I did this a couple years ago.
mccoyblues
April 6, 2010 at 12:57 am
I think it works out to about 10% of the car’s value.
artiststree
April 6, 2010 at 1:05 am
The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a claimed value of more than $500 changed at the beginning of 2005 as a result of the American Jobs Creation Act of 2004. In general, that Act limits a donor’s deduction to the amount of the gross proceeds from the charity’s sale of the vehicle.
Under an exception to this general rule, a donor may be eligible to claim a fair market value deduction if the vehicle is sold at a price significantly below fair market value to a needy individual, in direct furtherance of a charitable purpose of the recipient organization of relieving the poor and distressed or the underprivileged who are in need of a means of transportation.
NOTE: In this case, the charity provides to the donor an acknowledgment indicating that the donor may claim a fair market value deduction for the vehicle.
Ben Dere Dun Dat
April 6, 2010 at 1:34 am
(1) You’ll (or an accountant) have to do a rough run-through of your taxes (state and federal) in order to figure that out. (2) The value of your donation is up to the organization you donate it to. In other words, you need a receipt from them declaring the value of the item(s) donated. (3) You need to attach Form 8283 to your return. (4) You need to ITEMIZE your returm. (5) It isn’t a 100% deduction. For instance, if you’re in the 25% tax bracket you’ll only be able to reduce your taxes by $750 by donating a car worth $3000. (6) For more information, check out Publication 526, Charitable Contributions
UCANTCME
April 6, 2010 at 2:20 am
YOU MAY DEDUCT CHARITABLE CONTRIBUTIONS OF MONEY OR PROPERTY MADE TO QUALIFIED ORGANIZATIONS IF YOU ITEMIZE YOUR DEDUCTIONS.
GENERALLY, YOU MAY DEDUCT UP TO 50% OF YOUR ADJUSTED GROSS INCOME, BUT 20% AND 30% LIMITATIONS APPLY IN SOME CASES.
HOWEVER IF THE CHARITY SELLS THE VEHICLE FOR $1000.00 THEN THAT WILL BE FIGURE THAT YOU WOULD BE WORKING ON.
ALSO YOU MUST MAKE SURE THAT THE CHARITY IS A RECOGNIZED CHARITY FROM THE IRS.
carsplussolutions
April 6, 2010 at 2:31 am
I believe the maximum write off for a donated car is $500.