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Grex > Cars > #118: Donating used cars to charities for the tax deduction. | |
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| Author |
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rcurl
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Donating used cars to charities for the tax deduction.
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Feb 11 05:19 UTC 2001 |
The dealer from whom I am buying a new car will not take our old car in
exchange (no market for it), but suggested we donate it to one of several
charitable non-profit agencies that accept used cars and offer a receipt
that may be used for a tax deduction (based on blue-book value). This item
is for exchange of information on any of these agencies and on the related
tax deduction claims.
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| 6 responses total. |
rcurl
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response 1 of 6:
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Feb 11 05:25 UTC 2001 |
The used car in #0 is a 1985 Nissan Sentra XE wagon. It has had many parts
fixed or replaced (brakes, clutch, gaskets, etc), but does have a
carburetor problem we are choosing not to have fixed. The web Blue Book
value for this car is given as an astonishing $ 1,640 (if the carburetor
were fixed). That would give a tax deducation of about the same amount I
would have expected to be the *real* amount for which I could sell it.
Not a bad deal, as apparently some charitable non-profits will come and
get your car.
What do you think - and have you had an experience with this route
of disposing of a used car?
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slynne
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response 2 of 6:
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Feb 11 22:01 UTC 2001 |
I did that once. It was some veterans charity. They came and took the
car (which was in my Dad's name) and he got the tax deduction. I was
happy because I didnt have to get a junk yard to tow it. They were all
going to charge me to tow my car to the junk yard but the charity picked
it up for free even though I told them it was pretty much a junker.
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scg
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response 3 of 6:
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Feb 11 23:25 UTC 2001 |
From what I've been hearing from some friends, this sounds like it's becoming
almost a standard way to dispose of low value old cars. What do the charities
do with the cars once they get them?
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rcurl
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response 4 of 6:
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Feb 22 03:29 UTC 2001 |
We are donating the 1985 Nissan Sentra wagon to the Pioneer High School
auto shop. They will use it for training auto mechanics.
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scg
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response 5 of 6:
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Feb 22 23:04 UTC 2001 |
Yes, that one I've been aware of for a while. I'm wondering, however, what
is done with the car if you donate it the Jewish Community Center in my
neighborhood, to use one example. I'm guessing they probably sell the cars
for considerably less money than the "fair market value" that the donors claim
on their tax forms.
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rcurl
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response 6 of 6:
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Feb 23 07:31 UTC 2001 |
Probably, but that doesn't change the "fair market value". The "fair market
value" is what *can* be obtained for the car. Because someone is a poor
businessman doesn't set a standard on "fair market value".
We will use the Blue Book value for our taxes (or, did I say that). We
might subtract an estimate of the cost of the needed repair for the
carburetor problem.
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