I am weighing the benefits of donating a used vehicle to the SA or other nonprof org.
I do know that I can deduct something from my taxes, but would the blue book be a number I should work with?
Has anyone done this?
Spheramid Enterprises Architectural Woodworks
“Success is not spontaneous combustion, you have to set yourself on Fire”
Replies
Sphere,
You can't just pick a number from Blue Book. Usually, the charitable organization gives you a receipt "for value received", especially when it is a "gift in kind" as this will be. I do this with my clients and securities, and I make sure that everyone agrees on the value part of the "for value received". You would more than likely have to negotiate the value with the organization. For what it's worth, they are probably quite amenable to your suggestions!!! Good luck.
"The nearest thing to eternal life we will ever see on this earth is a governmental program" -Ronald Reagan
10-4, as I understand it , IRS wants the value that it sells for, after I donate..that is the issue I am weighing.
I could feasably donate a 1K vehicle, that would sell for 750..I guess it comes down to what I can sneak by ( here on the publick domain..LOL)Spheramid Enterprises Architectural Woodworks
"Success is not spontaneous combustion, you have to set yourself on Fire"
Under the rules of the IRS, you are entitled to deduct "fair market value" for your vehicle, only if the charity actually uses your car in their program. And they are required to send you a letter saying what the final disposition of your vehicle was. You can determine fair market value by using NADA, or Kelley. If you want to claim your 98 Escort was worth 5k, more power to you, but if you ever get audited, you're on your own. If the charity sells your car (which most end up doing), you can deduct at least $500, or what the car sold for in excess of $500. See who in your area actually uses the cars, ie, repairs them and gives'em away....They will provide you with the highest possible deduction. Also ask them for a copy of their 501C3. After working for one of these non-profits, I found out most of them are scams.
Thank you.
i'd hope that the SA is no scam, but I see where you are coming from.Spheramid Enterprises Architectural Woodworks
"Success is not spontaneous combustion, you have to set yourself on Fire"
On deals of this nature I have always wondered how you handle donating a use vehicle with the lilabilty. Would you also get a relese of lilability sign , for what it's worth. Or would it be handled as the same as selling it. "AS IS"
IE:you donate to a non profit group and the brakes fail and someone gets injured they come back on you for donating a defective vehicle. Just wondering?????
I believe, I'd be ok with it as is. Good point tho'.Spheramid Enterprises Architectural Woodworks
"Success is not spontaneous combustion, you have to set yourself on Fire"
If you have been depriciating the vehicle the only taxable benifit is what the books say it's worth.
I have a plumber who bought a hummer when IRS changed the exemption... He can't afford to keep it and can't afford to get rid of it.
Edited 2/29/2008 6:12 pm ET by sledgehammer
well, I paid cash for it 7 yrs ago..so the depre. never happened on the taxes..but a good point to ponder.Spheramid Enterprises Architectural Woodworks
"Success is not spontaneous combustion, you have to set yourself on Fire"
donated my old grey work avn to either goodwill or the salvation army.
probaby goodwill.
ran rough when I parked it ... about a month later I called and they towed it.
I was handed a blank receipt ... guy said to write in the blue book value ...
so I did. (probably $1K)
that was about 10 yrs ago ...
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
The have drastically changed the rules a couple of years ago.Too many people where have claiming that that truck was in perfect condition and claiming, say $5,000.I have noticed, at least locally, the number of ads asking for car donations has decreased drastically since they changed the rules..
.
A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
Yeah, the number of donation programs has decreased recently. Frankly, there is very little margin in this business, compared to the expenses. I do know for a fact, that SA and Goodwill do NOT use these vehicles. They are sold at auction, at lousy prices, which translates to a less than stellar deduction for the donor. Check Good News Garage, to see a program that does it right. I know they're not in your area, Sphere, but there has got to be something like it
I'll keep my eyes and ears open, no big hurry right now.Spheramid Enterprises Architectural Woodworks
"Success is not spontaneous combustion, you have to set yourself on Fire"
with scrap prices now ...
U might wanna check that route!
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa