Car donation and taxes

[Dznypal]

I am just starting to fill out our taxes. Ladt we we donated a car. Just wondering what sort of a deduction we can get for taxes. I do realize that that texts varrey but was just wondering a ball park figure when I get to that point I’ll check with a tax place.

 

[Claire&TheBoys]

It's considered a charitible contribution and goes on the Schedule A with your other itemized deductions: charitible contributions, real estate taxes, mortgage interest, etc. A lot of people do not have enough to itemize since the standard deduction is nearly $26,000 for taxpayers filing a married joint return. If you do, though, you'll have to have a value of the vehicle, like the Kelley Blue Book value, and you'll have to include a specific form with your tax return stating the information about the vehicle and the information for the charity that you donated it to - name, address, etc. I haven't done one in awhile and can't remember if you need the charity's tax ID number or not, but you might. There's no way of knowing how much dollar-wise you might get off your taxes. If you don't have enough to itemize even counting the donation, the answer is zero; if you already have a lot of itemized deductions, it'll add some, but not a huge amount.

 

[tvguy]

I think now the IRS requires the charity to provide you with how much they sold the car for and that is the amount that might be deductible. No more estimating or using Blue Book, it has to be exactly what the car netted the charity.
I donated a car to a High School auto shop in 2003 but back then you could assign a value to the car, in my case, $1,000 because they weren't selling it, the students were working on it.
The issue now here is the charities don't want a car more than 10 years old, with more than 100,000 miles on it, and they want you to provide a smog certificate. I don't know about most folks, but if my car fit that description, I wouldn't be donating it.

 

[Dznypal]

the car we donated was a 2001 with 187000+ miles--if we could have gotten it to pass the emissons Id still be driving it LOL

 

[starry_solo]

@tvguy is correct to an extent. We donated a car around 10 years old, less than 100k miles and I believe at that time, the max that could be deducted was $250-500 if the charity didn't tell you what they sold it for. A half a year later after filing taxes, they sent the IRS form that showed they sold it for $1500.

 

[mikehn]

I donated a boat. If the charitable organization has your correct address, email, they will send you a form 1098 C, you will need it to document any charitable deduction over $500

 

[Eighty8Keys]

Last year, I donated a 1999 Honda Odyssey with over 200K miles to a charitable organization that runs a vocational program to train people to work on vehicles, which are then sold to finance the program. About a month after I donated I received two forms from the organization, a Form 1098-C (Contribution of Motor Vehicles, Boats & Airplanes) and a Form 8282 (Donee Information Return - Sale, Exchange, or Other Disposition of donated Property). Both forms listed the $750 gross proceeds from the sale, which I believe is the deduction I can take on my taxes. If the value exceeded $5,000, then I believe I would have needed to get a professional appraisal and complete a Form 8283 which includes a declaration from the appraiser and an acknowledgement from the charity that they received the donation. I'm not a tax professional and this was my first time donating a vehicle so I'm hoping this is correct.

 

[HopperFan]

We've donated several cars.

That process should have been handled by the charity and the tax documents prepared by them with the value on it. You can't declare the deduction without their paperwork unless they were worth less than I think $250.

 

[tvguy]

We've donated several cars.

That process should have been handled by the charity and the tax documents prepared by them with the value on it. You can't declare the deduction without their paperwork unless they were worth less than I think $250.

I am not aware of any charity around here that handles their own car donation program. There is one, private, for profit company that they all contract with and gets a cut of the proceeds of the donated cars sale. I ran into that when I donated my mom's car and kept getting declined by various charities. The e-mails declining the car came from the individual charities. Finally a very nice lady for the private company called me and told me she had seen my car donation offers from several charities and wanted to explain why they were declining the donations. As I noted early, at that time they only wanted cars that were 10 years old or newer, had less than 100,000 miles, and had a current smog certificate.

 

[HopperFan]

I am not aware of any charity around here that handles their own car donation program. There is one, private, for profit company that they all contract with and gets a cut of the proceeds of the donated cars sale. I ran into that when I donated my mom's car and kept getting declined by various charities. The e-mails declining the car came from the individual charities. Finally a very nice lady for the private company called me and told me she had seen my car donation offers from several charities and wanted to explain why they were declining the donations. As I noted early, at that time they only wanted cars that were 10 years old or newer, had less than 100,000 miles, and had a current smog certificate.

So if you were to "donate" your car where would you get the IRS paperwork. I think it is a 1098. They file their copy with IRS and you get your copies to use with your taxes?

 

[tvguy]

So if you were to "donate" your car where would you get the IRS paperwork. I think it is a 1098. They file their copy with IRS and you get your copies to use with your taxes?

I suspect the paperwork is prepared by the third party company, but mailed as if it is coming from the charity. -I think that is why the charities hire this company, the charity doesn't have to have an expert on staff to deal with it, the private company handles all that. The charity can focus on their specialties.,

 

[HopperFan]

I suspect the paperwork is prepared by the third party company, but mailed as if it is coming from the charity. -I think that is why the charities hire this company, the charity doesn't have to have an expert on staff to deal with it, the private company handles all that. The charity can focus on their specialties.,

Okay so you are saying you still get that paperwork for your taxes.

I only posted in thread because OP worded it as it they got no paperwork (1098) and without it they can't file for the deduction over minimal amount (even that would likely need receipt). The 1098 has the amount you can deduct on it so there would be no question to ask.

We have donated multiple times to a charity that transfers the ownership to approved clients. They do all the paperwork, tax and otherwise.

 

[tvguy]

Okay so you are saying you still get that paperwork for your taxes.

I only posted in thread because OP worded it as it they got no paperwork (1098) and without it they can't file for the deduction over minimal amount (even that would likely need receipt). The 1098 has the amount you can deduct on it so there would be no question to ask.

We have donated multiple times to a charity that transfers the ownership to approved clients. They do all the paperwork, tax and otherwise.

Yes, you get all the required tax paperwork. I can see where individual charities just couldn't keep up with the ever changing requirements to accept donated cars. The tax forms, the title/registration transfers, verifying if the person donating the car had a legal right to donate it, the sale of the cars etc. So this one company went into business with people trained to handle all that, and they take a percentage of the profit for their work.

 

[HopperFan]

Yes, you get all the required tax paperwork. I can see where individual charities just couldn't keep up with the ever changing requirements to accept donated cars. The tax forms, the title/registration transfers, verifying if the person donating the car had a legal right to donate it, the sale of the cars etc. So this one company went into business with people trained to handle all that, and they take a percentage of the profit for their work.

Oh I get it, totally. I just wonder if OP donated it through a proper channel as they don't seem to be looking at the proper paperwork.

 

[Anthony1971]

In 2022 and after (as of now) unless you exceed the standard deduction which is very difficult for most as your state tax and Property tax are limited to 10K for Joint and 5K for single in other words your donations would have to be very big to make up the difference and really not worth much (see below) as it is only the amount over the standard deduction 25,900 and 12,950 respectively. Prior years you would get a small amount for charity even with the standard deduction. Also prior when state and property were fully deductible it was much easier to meet as the standard deduction was far lower but many were limited anyway because of the AMT which in the end would bring you back to only being able to take a standard deduction if you reached the phase out income level. Either way as of 2022 if you donate a car or boat or like just feel good you helped someone.... Unless you are donating your 2022 corvette that will give you a nice write off maybe as AMT still does exist.... Not trying to assume anything with AMT but the theory is if you are donating more than 10% of your income you better have solid proof of the donations as you can be assured of an audit why I used the word most as it can and does happen.

 

[jerrywilliams]

We think of donating our car to Ukraine now as i know they need them more than anyone else.
This charity project https://cartodonate.com transforms old vehicles into fully equipped medical or military cars and help Ukrainians to save innocent lives. Can't think of a better place to make a donation.