giving car away.taxes?
packerfan asked:
I own a 2000 dodge neon. its in goos shape, but i know i will not get much for a trade in. Now there is a single mother in my apt building whos ex ran off with the car. i would like to just give her my car. My question is can i claim it on my taxes as a donation? thanks
lol. not goos shape. Good shape
I own a 2000 dodge neon. its in goos shape, but i know i will not get much for a trade in. Now there is a single mother in my apt building whos ex ran off with the car. i would like to just give her my car. My question is can i claim it on my taxes as a donation? thanks
lol. not goos shape. Good shape
Private gift, not deductible.
Nope. The only time you can claim the value of a donated vehicle as a deduction is if you give it to a registered charity. Even then, you can only deduct it if you’re filling out a Schedule A and itemizing all your deductions.
Generally, you can only make deductible donations to 501(c)(3) organizations. Giving your car to a friend/neighobor is not a deductible donation. Worse yet, you may end up incurring state excise tax on the gift transfer (check with the DMV). The only piece of good news is that the recipient does not owe any gift tax.
Nope. You need to give the car to a charitible organization (501c3 not-for-profit).
Also, if they sell the car (which most charities do), you only can deduct “gross proceeds” as a charitible contribution - - which means you don’t get squat for it unless you are able to itemize your tax deductions and what you get is based on what they can sell the car for (blue book value has no bearing anymore on the deduction amounts).
As an FYI, I donated a 2001 Chevy Cavalier in 2007, I do itemize. The “gross proceeds” were a whopping $550 on a car valued at over $4-grand by Kelly Blue Book. My tax bracket for the year was 15%. So that $4-grand car saved me $82.50 on my taxes.
As I don’t even know if you can itemize and I do not know your exact tax bracket - it may be worthwhile for you to do the trade-in. You’ll probably get a better value for the car. Of course, if you want to donate it to a charity for the sheer joy of having the car off your hands and some money going to a good cause, you can do that. Just don’t bank on a great tax write-off.
you can claim it on taxed but to be sure you are doing it right you need to contact an tax consultant and clarify what you are doing. as for what you are doing this is one thing i would not even worry about for you are trying to help someone less fortunite then you and this is great!!!! you will receive it back when you least expect it for god will see the good that you did and reward you as he sees fit.. I commend you for you generosity KUDOS FOR YOU!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!