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Old 07-13-2010, 09:27 AM
 
841 posts, read 2,476,611 times
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I have a car that I've been trying to sell for over a year with no success. I am tired of having this car just sitting on my driveway taking up space and I was thinking that if I don't sell it by the end of the year, I will donate it to a charity. Now, I did this a few years ago in NY where I donated a car and got back a letter from the charity stating that the book value of the car was something around $3,000 - and I got back a nice big return that following year. So I consulted with my accountant and she said that the laws are pretty much still the same, BUT it depends on who you donate the car to. If I donate the car to a charity and they turnaround and sell the car – then I can only deduct the gross proceeds of that sale and no more. Or if I donate the car and the charity decides to retain the car for its own use – then I can only deduct the fair market value (FMV) as a charitable contribution on my tax return. The car is not a great car and I am sure I can back more in taxes if they give me the book value versus gross proceeds.

Any suggestions as to an organization that I can donate a car to and get book value instead of gross proceeds?
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Old 07-13-2010, 11:28 AM
 
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I donated my car to Goodwill's "cars for work" program a few years ago. They give cars that are in running condition and not in need of major repairs to low income people who need transportation to work.
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Old 07-13-2010, 11:32 AM
 
841 posts, read 2,476,611 times
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That sounds great...do you know if they give you a receipt for book value?
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Old 07-13-2010, 11:47 AM
 
Location: Charlotte, NC
3,365 posts, read 10,026,600 times
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Quote:
Originally Posted by Samana View Post
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Any suggestions as to an organization that I can donate a car to and get book value instead of gross proceeds?
If memory serves, the law was changed a couple of years ago, so you can no longer get book value for a car, regardless off whom you donate to.
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Old 07-14-2010, 07:22 AM
 
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Quote:
Originally Posted by flyingscotsman View Post
If memory serves, the law was changed a couple of years ago, so you can no longer get book value for a car, regardless off whom you donate to.
That's what I thought too..which is why I asked my tax preparer about the tax law for car donation. As long as the organization uses it for their own purposes, I can get book value. I wanted to donate my car last year (before 12/31) to write it off on taxes, but I didn't. I tried keeping it a little longer to see if anyone can buy it. I've had a few people interested, but then they don't come back.
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Old 07-14-2010, 07:53 AM
 
Location: State of Being
35,879 posts, read 77,519,093 times
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Quote:
Originally Posted by flyingscotsman View Post
If memory serves, the law was changed a couple of years ago, so you can no longer get book value for a car, regardless off whom you donate to.
That is correct. I am certain of this b/c I donated a car back in 2005 and the laws changed after that, making it less of an option (as far as tax purposes) to donate vehicles.
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Old 07-14-2010, 07:56 AM
 
Location: State of Being
35,879 posts, read 77,519,093 times
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Quote:
Originally Posted by Samana View Post
That's what I thought too..which is why I asked my tax preparer about the tax law for car donation. As long as the organization uses it for their own purposes, I can get book value. I wanted to donate my car last year (before 12/31) to write it off on taxes, but I didn't. I tried keeping it a little longer to see if anyone can buy it. I've had a few people interested, but then they don't come back.
Have you considered simply advertising the car as a "give-away" and putting it at some figure like $500? You didn't state what the make or model of the car is so I have no way of knowing what is feasible.

If you are paying taxes and car insurance on the vehicle at this time, selling it for a nominal fee would at least save you the money you are currently spending on taxes and insurance (and inspection fee/license tag renewal).

Just a thought . . .
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Old 07-14-2010, 07:58 AM
 
Location: Charlotte, NC
3,365 posts, read 10,026,600 times
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So now I am curious what is the car?
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Old 07-14-2010, 07:59 AM
 
Location: State of Being
35,879 posts, read 77,519,093 times
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Quote:
Originally Posted by flyingscotsman View Post
So now I am curious what is the car?
I am, too, LOL.
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Old 07-14-2010, 09:41 AM
 
841 posts, read 2,476,611 times
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Quote:
Originally Posted by anifani821 View Post
Have you considered simply advertising the car as a "give-away" and putting it at some figure like $500? You didn't state what the make or model of the car is so I have no way of knowing what is feasible.

If you are paying taxes and car insurance on the vehicle at this time, selling it for a nominal fee would at least save you the money you are currently spending on taxes and insurance (and inspection fee/license tag renewal).

Just a thought . . .
It's a 1996 Buick Regal...it has 166k miles..it also has dents on the drivers' side and it leaks coolant. It's not the prettiest or best car, but when I was using it, I was driving close to 70 miles a day with it - 5x a week. So it's very reliable. I've had it on my driveway for a year now with no plates or anything so I haven't been paying taxes on it. My husband drives it around the community every few days just to keep stuff from gunking up. That's why if I don't sell it soon, I am just donating it...
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