In article om, DerbyDad03 wrote:
On 10 Sep, 11:25, (Doug Miller) wrote:
In article om, nico
wrote:
Good to know!! Read it............. If you are considering donating a
used car to a charity there are several things you need to know. Your
donation benefits not only you
Baloney.
Donate a car worth, say, $1000, for a $1000 deduction from my taxable income,
and get maybe $300 off my taxes.
Or sell the car, and get $1000.
How, exactly, am I better off by donating it?
--
Regards,
Doug Miller (alphageek at milmac dot com)
It's time to throw all their damned tea in the harbor again.
The new rules for auto donations over $500 require that (in most
cases) charities actually sell the vehicle (even if it's to a junk
yard) and then you get to deduct whatever the charity received for
the car, once they inform you - in writing - of the amount received.
Gone are the days of deducting the highest book value listed for a
pristine used car when the donated vehicle was a piece of junk. See
http://www.irs.gov/pub/irs-pdf/p4303.pdf for more info.
However, as per that document, if the charity is going to make
"significant intervening use of the vehicle" then all you need is
verification from the chartity that the vehicle is worth what you said
it was.
For example, let's say I donate a beat up, broken down vehicle to the
auto repair program at a local BOCES. Regardless of the condition of
the vehicle, if the school plans to use the vehicle to teach auto
repair and as long as they agree (in writing) that the dollar amount
that I put on the donation form is valid, I can deduct a lot more than
the vehicle would be worth on the open market.
Not legally, you can't.
Been there, done that - the actual amount that my taxes were reduced
was more than I, or any charity, could have sold the vehicle for.
Gee, I don't think it's really too smart to admit in a public forum to have
engaged in a conspiracy to evade income taxes...
--
Regards,
Doug Miller (alphageek at milmac dot com)
It's time to throw all their damned tea in the harbor again.