Bobsled
12-23-07, 11:58 AM
I have an older car I would like to donate to a charity and get a tax receipt. Does anyone have experience with this? Any recommended charity?
TIA
TIA
Foo - Donating a car to charity
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Tom Stormcrowe
12-23-07, 12:15 PM
Look here :D
http://www.givecars.com/car-donation-california.html
http://www.givecars.com/car-donation-california.html
Bobsled
12-24-07, 08:35 AM
Thanks, I'll check it out.
thomson
12-24-07, 02:35 PM
btw, Bob, make sure the rest of your return is legit as this is now a red-flag item.
This was so abused the IRS had to clarify what the deduction is, it is NOT the KBB value (or what you think the value is) at the time of donation, it is what the charity actually sells it for. They wholesale it so you aren't likely to get anywhere near the deduction you think.
A better method is to sell it yourself (even use a wholesaler if you want). Take the proceeds and donate it any way you wish.
This was so abused the IRS had to clarify what the deduction is, it is NOT the KBB value (or what you think the value is) at the time of donation, it is what the charity actually sells it for. They wholesale it so you aren't likely to get anywhere near the deduction you think.
A better method is to sell it yourself (even use a wholesaler if you want). Take the proceeds and donate it any way you wish.
BikeWNC
12-24-07, 02:56 PM
I donated a vehicle back several years ago. My CPA asked that I take pictures of the car, get local for sale ads for a comp, and pull the Kelly BB value. Be honest about the condition of the car. Realize that you will not be able to take the Kelly BB value as the deduction, it will most likely be closer to the local sale price. Document everything especially the charity to which you donate.
edit. In my case, the car was not sold by the charity but given to a local person as aid in a back to work program. So my comp ads were used to determine the deduction.
edit. In my case, the car was not sold by the charity but given to a local person as aid in a back to work program. So my comp ads were used to determine the deduction.
lodi781
12-24-07, 02:58 PM
most local fire departments will take them. You get a tax write off and they get a car to train on. check with your local municipality.
thomson
12-24-07, 03:11 PM
That is the old standard!! It has now changed.
Here is an example of the old way (prior to January 2005), you have a car worth $3,000 that suddenly needs a new engine. You can put $5,000 into it and still have a car worth $3000 or donate it and write off the full $3000.
The new law is you donate this car needing the engine to Father Flanagan who wholesales it for $100. That is your deduction, $100
And, as I said, because this is so abused, a higher percentage of auto-donors are being audited than non-auto-donors.
Deductor beware.
I donated a vehicle back several years ago. My CPA asked that I take pictures of the car, get local for sale ads for a comp, and pull the Kelly BB value. Be honest about the condition of the car. Realize that you will not be able to take the Kelly BB value as the deduction, it will most likely be closer to the local sale price. Document everything especially the charity to which you donate.
edit. In my case, the car was not sold by the charity but given to a local person as aid in a back to work program. So my comp ads were used to determine the deduction.
Here is an example of the old way (prior to January 2005), you have a car worth $3,000 that suddenly needs a new engine. You can put $5,000 into it and still have a car worth $3000 or donate it and write off the full $3000.
The new law is you donate this car needing the engine to Father Flanagan who wholesales it for $100. That is your deduction, $100
And, as I said, because this is so abused, a higher percentage of auto-donors are being audited than non-auto-donors.
Deductor beware.
I donated a vehicle back several years ago. My CPA asked that I take pictures of the car, get local for sale ads for a comp, and pull the Kelly BB value. Be honest about the condition of the car. Realize that you will not be able to take the Kelly BB value as the deduction, it will most likely be closer to the local sale price. Document everything especially the charity to which you donate.
edit. In my case, the car was not sold by the charity but given to a local person as aid in a back to work program. So my comp ads were used to determine the deduction.
smoke
12-24-07, 03:23 PM
Kars4Kids.org i did this at the first of this year. they pick it up, the car is auctioned, the money is donated to children's charities, and you get the tax write-off. they sent me the form stating how much the car sold for so i can write it off under the new tax laws. i recommend these people