Anyone donated a car to charity? how did it work out for you at tax time? is it worth it?

Question

Have a car worth 6,000 wondering if i should just donate it and write it off on taxes.

Answer 1

I've never done it but make sure that the car is COMPLETELY sound because people have gotten sued and that is never good!

-Pax et Lepos!!

Answer 2

Just because your car is "worth" 6,000, doesn't mean you'll get a tax write-off for that amount.  The place you donate it to will give you a receipt for the amount of money they think it's worth, or that they sold it for.

I donated my car.  It was an old car, about 12 years old.  The standard write-off for taxes was $500.  They mailed me their receipt after a few weeks, and determined the amount to be $650.  So, not sure how much this really saved me at tax time.

Answer 3

The rules changed.

You *think* the car is worth $6000, but the charity sells it for $600.  Your deduction is limited to $600 (at 25% tax bracket, that *might* be worth $150 to you if you can itemize).

If you want money, sell it.

Answer 4

If you are donating it for the tax deduction, you'd be ahead to just sell it.

Yuo can't just deduct the value of the car.  You can only deduct what the organization sells it for, and donated cars are usually auctioned off so usually sell for less than their blue book value even if they are in good condition.  And you only get a deduction if you itemize.

Your tax savings is the amount of the deduction times your tax bracket.

So if you are itemizing anyway, and they sell it for $5000, and you are in a 15% tax bracket, your tax savings would be $1250, 15% of $5000