ed wrote:

- quote -

Here's another definition of "abandonment."

You drive the car to the Chattahoochee river, just on the
edge of the bank, look around to make sure nobody sees you,
put it in neutral, then give it a wee nudge. (Then report
it stolen.)

People hereabouts in Columbus, GA are trying to get
permission to blow two dams no longer needed for textile
mill power, and that will "restore" the river to it
original, pristine state and thus we will have all these
tourist kayakers taking advantage of the rapids and bringing
money of course.

What's going to be interesting is to see all those
"abandoned" vehicles, many I'm sure holdovers from the
infamous days of Phenix City, pre 1954. Some missing persons
will probably be found, too.

ChEAr$,
Harlan Lunsford, EA n LA

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You should have ABANDONED the car, wherein you could habve
deducted the entire remaining depreciation value from
ordinary income. See Publication 544 page 4 which seems to
prohibit this if title is transferred to another entity, but
you must transfer title to *someone* to abandon a car. The
technical similarity of Abandonment and a gift to Garity,
but the difference in tax treatment would indicate there is
more to this than Publication 544 discusses. ed

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"shane" <shane1234[at]123mail.org> wrote:

- quote -

Exactly what would you recoup it AS? You deduct the FMV of
donated property. If that's less than your basis, its less
than your basis.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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shane wrote:

- quote -

Dangerous to do, but let's "assume" you still have book
value of 1500$ when you donate the vehicle. Naturally you
can't just write that off after you're not using the vehicle
any longer.

Anyway, that 1500$ is your "cost" or what we call "basis"
in the car. Your only recourse now is to donate it and
deduct the fair market value, which in this case is less
than your basis. (tax law says cost or fair market value,
whichever is less).

Hence that will be your only write off.

ChEAr$,
Harlan Lunsford, EA n LA

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I have a small consulting business which is organized as a C
corporation. I recently donated my 100% company car to
charity mainly as an easy way to get rid of it as it was
falling to pieces. The car had about $1500 of depreciation
remaining to be written off but the fair market value can't
have been much more than $500. How should this be handled
tax-wise? The fair market value is a charitable donation,
but what about the remaining $1000. Is there any way I can
recoup that?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >