Comments on: Can A Retired Person Donate A Car And File For Taxes?

By: Dr. Deth

Dr. Deth — Thu, 24 Sep 2009 09:28:13 +0000

He can sell the car and donate the money–the charity would get more money that way….
(By the way, he can’t sell the car to you for $1 and have you donate it, because if he did, your deduction would be limited to $1.)

By: Judy

Judy — Thu, 24 Sep 2009 08:38:16 +0000

if he collects social security benefits – he should be filing a tax return – those benefits are taxable – does he have any other income like interest or pension? those are taxable also.

By: Wayne Z

Wayne Z — Thu, 24 Sep 2009 08:35:38 +0000

If he doesn’t have to file taxes, or even if he did but didn’t have any tax liability, a charitable donation wouldn’t give him any tax benefit. Even if he did have tax liability, there would be no tax benefit unless he had enough deductions to itemize.
A donation can only reduce your tax – since his is already zero, there’s nothing to reduce.
That doesn’t stop him from donating the car, just means he doesn’t get a tax benefit for it.

By: bigbro12

bigbro12 — Thu, 24 Sep 2009 08:32:03 +0000

A tax refund is just that; a refund of overpaid taxes.
If he doesn’t have any income to have taxes withheld from, their is nothing to refund to him.