If I donate a car to charity, and get a receipt from them saying it was worth $1500, how would that translate to money in my pocket come tax time? As in, how much less do I pay, or, how much more of a refund do I get?
Is it more profitable to sell a car for $500, or donate it for $2500? Cause, the donation people always exagerate the value for you. . .
technical tax stuff
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Mommy Dearest
- Posts: 1393
- Joined: Tue May 25, 2004 12:59 pm
Most autos given to charity are promptly sold at auction and the new tax law states that they must let you know what the car actually sold for and that is your tax deduction. If the charity actually keeps it for their use you may deduct fair market value of the car. We usually use Kelley Blue Book. Lets see sell if for $1000.00 and have $1000.00 in your pocket or give it to charity and save $250.00 in Federal Tax....................................Of course you will probably be sent to heaven for eternity but where does that come in? lol
With the long list of things wrong with it, I won't get much for it. Last time I donated a car, it was a rusted out (so rusted that the floor in the back seat would flood when it rained. Had to drill holes in the floor pan for drainage), ugly, didn't even start any more, 1986 Grand Am. They gave me a receipt for $1800. Now I have a pretty decent looking, very little rust (for a MI vehicle), black four door sunfire. Figured I'd score at least $2500 on the receipt. At the 25% return (based on 1000/250 example above) I'd pocket $800 or so. However, with the auction rule in place. . . it MIGHT sell for $1000 being that at an auction, you can't really drive the car long enough to notice all the things wrong with it. So, I guess I try to sell it out right. Which sucks, cause it's gonna be a pain. All the people looking for a great buy at $500 coming to look at it and walking away because it's more than they can handle.
List of things wrong with it:
3 speed auto never shifts into 2nd. Goes from 1st to 3rd. Fun when you are going 40 and try to pass and it wants to downshift to second for power, but goes to first. . .
Windshield wipers, when off, point straight up, instead of laying down like they are suppose to. Work otherwise. Just confused as to where to stop.
There's no heat. Which is fun in the winter. I think it's a thermostat problem. Too lazy to fix it.
Left rear bulbs are out. No turn/brake light.
Light in middle break light thing in the window is out.
If you turn on your right turn signals for more than about 7 seconds, it disables the ABS. So, I never use it as I like having ABS in the snow.
Muffler is hanging by it's braket. Busted off at the end of the exhaust. Still doesn't run too loud as the rest of the exhaust still muffles the tiny 2.0 engine enough.
CD player is super cheap after market player that skips even if you don't hit a bump. (installed by previous owner)
Power steering pump squeeks like crazy and intermitently dumps it's fluid on the driveway.
If you don't start it right (I know how due to experience), it may not start for another 20 minutes of constant trying.
You have to turn the key to run, then all the way back to the accessory position, then back to start when starting it. Otherwise, the 'Check Oil' light comes on and stays. Well, unless you turn the car off, and start it right back up.
Good things about the car:
Super great on gas.
New alternator
Newer starter (1 year)
Newer fuel pump (1.5 years)
Non factory standard engine. As in, the original engine died and a used GM engine of unknown origin is now in it, but it had less than 40k miles on it, so says the junk yard it came from. However, explain the oil that it leaks as if it had the 150k miles the odometer says. . . . So, not really sure this is a plus. The different engine is also the cause of the mystery oil light issue listed above. Incompatabilities between the engine's oil stuff and the standard Sunfire's oil checking stuff.
That's all I can think of. It's funny though. Even with all the stuff above, I'm so use to it, that I drive it all over the place. Hundreds of miles on some days. For all it's issues, it's very reliable. I just need something bigger. Like, a Focus wagon or something. My best bet is probably to trade it in on another used car. One of those places that say "Drive it in, pull it in, carry it in. We don't care. We'll give you $500 dollars for it!!". I just won't ever let them see it till I negotiate what I'm going to pay for the used car I'm buying from them. Well, that is, unless someone here wants a really nice sunfire!!
List of things wrong with it:
3 speed auto never shifts into 2nd. Goes from 1st to 3rd. Fun when you are going 40 and try to pass and it wants to downshift to second for power, but goes to first. . .
Windshield wipers, when off, point straight up, instead of laying down like they are suppose to. Work otherwise. Just confused as to where to stop.
There's no heat. Which is fun in the winter. I think it's a thermostat problem. Too lazy to fix it.
Left rear bulbs are out. No turn/brake light.
Light in middle break light thing in the window is out.
If you turn on your right turn signals for more than about 7 seconds, it disables the ABS. So, I never use it as I like having ABS in the snow.
Muffler is hanging by it's braket. Busted off at the end of the exhaust. Still doesn't run too loud as the rest of the exhaust still muffles the tiny 2.0 engine enough.
CD player is super cheap after market player that skips even if you don't hit a bump. (installed by previous owner)
Power steering pump squeeks like crazy and intermitently dumps it's fluid on the driveway.
If you don't start it right (I know how due to experience), it may not start for another 20 minutes of constant trying.
You have to turn the key to run, then all the way back to the accessory position, then back to start when starting it. Otherwise, the 'Check Oil' light comes on and stays. Well, unless you turn the car off, and start it right back up.
Good things about the car:
Super great on gas.
New alternator
Newer starter (1 year)
Newer fuel pump (1.5 years)
Non factory standard engine. As in, the original engine died and a used GM engine of unknown origin is now in it, but it had less than 40k miles on it, so says the junk yard it came from. However, explain the oil that it leaks as if it had the 150k miles the odometer says. . . . So, not really sure this is a plus. The different engine is also the cause of the mystery oil light issue listed above. Incompatabilities between the engine's oil stuff and the standard Sunfire's oil checking stuff.
That's all I can think of. It's funny though. Even with all the stuff above, I'm so use to it, that I drive it all over the place. Hundreds of miles on some days. For all it's issues, it's very reliable. I just need something bigger. Like, a Focus wagon or something. My best bet is probably to trade it in on another used car. One of those places that say "Drive it in, pull it in, carry it in. We don't care. We'll give you $500 dollars for it!!". I just won't ever let them see it till I negotiate what I'm going to pay for the used car I'm buying from them. Well, that is, unless someone here wants a really nice sunfire!!