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Donating cars to charity

  • Anyone done this?

    Need a new car, and wondering if i would be better off donating the current car for the write off rather than getting raped trading it in, or going through the hassle of trying to sell it on my own.

    It has a few issues, so I will take a hit in the pocket book no matter what I do. Airbag light on dash is lit, $900 to fix, check engine light is on, mechanic can't get it to go out. It's a 2005 with 210,000 miles on it, don't want to sink a bunch of money into it.

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    Ron Jeremy

  • Without getting into a ton of details, I know you will need to get a qualified appraisal if the car is worth more than $5,000 and the charity will have to sign and accept it. You must get a receipt within 30 days from the charity. You will also have to file form 8283 on your tax return.

    OCspartan

  • OCspartan said...

    Without getting into a ton of details, I know you will need to get a qualified appraisal if the car is worth more than $5,000 and the charity will have to sign and accept it. You must get a receipt within 30 days from the charity. You will also have to file form 8283 on your tax return.

    Thanks, I had read that. Thing that interests me is you get the full value of the donation if over $500.

    I am no tax expert, but that seems like a better option that getting raped by a dealership or trying to sell it for 2-3 months to the public, unless of course, you don't receive the full value of the donation when doing your taxes.

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    Ron Jeremy

  • Ron Jeremy said...

    Thanks, I had read that. Thing that interests me is you get the full value of the donation if over $500.

    I am no tax expert, but that seems like a better option that getting raped by a dealership or trying to sell it for 2-3 months to the public, unless of course, you don't receive the full value of the donation when doing your taxes.

    What do you mean "full value"? Of course you're not going to get the full value in saved taxes. You'll save whatever the charity deems the car worth multiplied by your tax rate. This is assuming you itemize your deductions. I don't think I've ever come across a case where donating a vehicle would save more in taxes than you could get if you traded it in.

    Most people who donate cars just don't want to deal with trying to sell it.

    svenski84 ●

  • Be careful where you donate it. Some charities (including St. Vince de Paul) didn't bother to take over the title when accepting the gift car, and then give it to someone needy, who have at times, also not bothered to register or insure the car. Bottom line: generous people have been hit with parking tickets, towing fees for abandoned cars, etc. because some of the charities are lazy, and the people they're trying to help are unscrupulous.

    Rodeo Burger

  • Did it 2 years ago. I think it was a $600 deduction. Pretty easy.

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    SeeGreen

  • svenski84 said...

    What do you mean "full value"? Of course you're not going to get the full value in saved taxes. You'll save whatever the charity deems the car worth multiplied by your tax rate. This is assuming you itemize your deductions. I don't think I've ever come across a case where donating a vehicle would save more in taxes than you could get if you traded it in.

    Most people who donate cars just don't want to deal with trying to sell it.

    That is why I asked the question. I have never looked into this, just trying to figure out what to do with this car.

    You seem to be an expert, lets say someone donated a car worth $4000, what is the tax write off on it multiplied by a persons tax rate?

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    Ron Jeremy

  • Ron Jeremy said...

    That is why I asked the question. I have never looked into this, just trying to figure out what to do with this car.

    You seem to be an expert, lets say someone donated a car worth $4000, what is the tax write off on it multiplied by a persons tax rate?

    First, do you know if you itemize deductions (separately list mortgage interest, state income taxes, etc.) on your tax return or do you use the standard deduction? If you use standard, then donating will probably be worthless.

    So if you itemize and it's worth $4000, then you'd save $1200 in taxes if your marginal tax rate is, for example, 30%.

    Feel free to PM me if you have any other questions.

    This post was edited by svenski84 on 6/28/2012 at 11:23 PM

    svenski84 ●

  • Don't forget about interest. If you trade the car in, you will be borrowing less money, so you'll pay less total interest. That's assuming you're financing the car, of course.

    Teddy Brewster ●

  • Look at different organizations you can donate the car to. Some organizations will allow you a State write off as well, at least in 2011. I'm not sure if that was one of the credits the governor nixed. Pick an org where it would benefit you on both your Federal and State returns, assuming that you live in Michigan.

    Beachnutts1 ●

  • A few years ago, I donated a car to the local fire brigade for training purposes. I didn't get any money for it and didn't get a tax deduction, but it was worth it. First, because they came and collected it for free, and I got the satisfaction of knowing that they burned that piece of shit to the ground. Just wish I could have been the one to light the match.

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    Here will be an old abusing of God's patience and the king's English

    Rule Spartannia

  • I read the title here as "Donating cats to charity" confused

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    RCMB Join Date: September 2001

    Pinky Tuscadero

  • what exactly are you thinking you are going to get for a beater with 210k miles on it and a crap load of issues. You should be glad that anyone will take it off your hands...I'm sure a dealer probably wont.

    Brodson

  • Ron Jeremy said...

    Anyone done this?

    Need a new car, and wondering if i would be better off donating the current car for the write off rather than getting raped trading it in, or going through the hassle of trying to sell it on my own.

    It has a few issues, so I will take a hit in the pocket book no matter what I do. Airbag light on dash is lit, $900 to fix, check engine light is on, mechanic can't get it to go out. It's a 2005 with 210,000 miles on it, don't want to sink a bunch of money into it.

    I have two, slightly damaged. This might be my way out of fixing them!

    LoneWolfSparty

  • Pinky Tuscadero said...

    I read the title here as "Donating cats to charity" confused

    Poor people need meat too.

    LoneWolfSparty

  • LoneWolfSparty said...

    Poor people need meat too.

    I hear it tastes like chicken

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    Snake Plissken

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