- quote -

I'm sure everyone knows that there is no "standard tax
writeoff" for a used car donation. If the car is worth
$247, that's what you can deduct - not $500.

--
Don EA in Upstate NY

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<cars[at]childrenincrises.org> wrote

- quote -

First, there is no "standard tax writeoff" amount.

And yes, if you were to claim a deduction for a vehicle
(car, truck, boat, etc) for a greater amount, you need to
get papers from the charity that spell out the disposition
of the vehicle. Any deduction for you may be limited to the
amount the charity sold the vehicle for.

In the end, the reality is that your contribution was of a
vehicle that really was only worth $100- $300 (less the
towing charges.)

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== >

cars[at]childrenincrises.org wrote:

- quote -

If the automobile is donated for use by the charity in its
exempt purpose, FMV continues to be the amount deducted.

Bill

<< ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== >

cars[at]childrenincrises.org wrote:

- quote -

The standard write off is not $500. If the car has a FMV of
$500 or less you use the old rules of FMV. If the FMV is
above $500 you follow the new rules:
1. If the car is sold without any significant intervening
use or material improvement by the charity, your deduction
is limited to the amount of gross proceeds from its sale.
2. If the charity intends to make significant intervening
use of or materially improve the car, you generally can
deduct its fair market value.

See IRS Notice 2005-44 (http://surl.co.uk/?2495) for more
detail on the definition of significant intervening use or
materially improve the car.

<< ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== >

New IRS Tax Law from Jan. 1, 2005 says the standard tax
writeoff for used car donation is $500. Anything worth more
than $500 is limited to the gross proceeds from the actual
sale of the vehicle by the non-profit organization. Most
vehicles remain unsold and are usually scrapped for approx.
$100-$300 apiece.

<< ================================================== ===== > << 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 (2006) - All rights reserved. > << ================================================== ===== >