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Ever give a car to charity?

Discussion in 'The Lounge' started by laketex, Apr 28, 2005.

  1. laketex

    laketex 3/4 ton status

    Feb 17, 2000
    Likes Received:
    North Texas
    We've got a '99 Chevy prism with two busted door latches and won't run for some reason or another. It's either fuel or fire, but Keeping a house running, 2 older daily driver cars, and 6 acres of lawn mowed have been my after work priorities lately....anyways, we have this pos non-running car in the driveway. Thinking about donating it to charity like the women's shelter or a church. Anyone ever do this? How do you figure out how much it's worth and does it work as a tax deduction? And how the heck does a tax deduction work? Is it some sort of percentage or if the car is worth $500, I get $500 off my taxes next year?

    Thanks in advance. I guess I'm a dumbass about that sort of stuff...all I know is I want the car gone, I don't have time to fix it, and tax breaks would be nice!

  2. mr_clean

    mr_clean 1/2 ton status

    Sep 21, 2003
    Likes Received:
    Sacramento, CA
    I believe the laws just changed this year regarding donating vehicles to charity.

    I did it once and at that time it was just figure out your blue book value and plug that into your charitable contributions area on your taxes. However, I'm pretty sure there was some new legislation that went into effect in Jan 05 so I'd look into it.
  3. newyorkin

    newyorkin 1 ton status

    May 8, 2001
    Likes Received:
    Los Estados Unitos
    That is correct, the law has changed regarding vehicle donation.

    Post-12/31/04, if you donate a vehicle, you can only writeoff the amount that the charity gets when they sell it.
    I.E. you donate a car you think you can get $2000 for in the local paper, but the charity you gave it to sells it for $1000, you can only write off that $1000, not the $2000 book value, etc. It looks like at $500, you can write that off, you don't need to write off the amount they sold it for, though.
    Up til 4/15, a lot of these charity's were gladly taking donation vehicles and backdating the receipts to pre-12/31.

    The word from the IRS:

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