- Question about donating to the Salvation Army.?
- How do you buy a car from the salvation army?
- Question on Donating a car. If my car’s blue book value was $5000. If I donate it, how much tax do I get back?
- For The Last question about getting cars for free that was donated, Where do you get your answer from?
I Am Thinking About Donating My Car To The Salvation Army, How Can I Get The Value Back From Taxes?
19
Oct
PepsiLim
October 19, 2009 at 11:03 am
As part of the job creations act of 2004 the government tightened up reporting of car donations.The charity must take your social security number along with the donated car.They then have up to 30 days after it sells to tell you how much they got for it.You can only deduct the gross return from the sale.So if the Kelly Blue Book value is $2500.00 but the charity only got $800.00,you can only deduct the $800.00.
WSOP Hold'em Player
October 19, 2009 at 11:20 am
your accountant or the irs will tell you
they say
October 19, 2009 at 11:41 am
You won’t get the whole value back, but you might get some of it.
In most cases, the Salvation Army will sell the donated car at auction. After it’s sold, they’ll give you a receipt for what they sold it for. This might very possibly be well below “market value”. Your deduction on your taxes is whatever they sold it for.
If you itemize deductions, you would list the car donation as a charitable deduction. So if they sold the car for $2000 and you are in a 15% bracket, your taxes would be lower by as much as $300.
If you don’t itemize, you get no tax benefit from the donation.
Judy
October 19, 2009 at 11:45 am
Check the tax laws at Irs.gov to see if there’s anything you need to get (a form or something) then get a receipt from the S.A. when you donate it.
If I understand the rules correctly, I believe there is a limit to the amount of credits for donations you can claim each year, so make sure you find that out first
virgo826
October 19, 2009 at 12:44 pm
they will show you the way, but get it recorded or videw recorded, otherwise you might be tricked.
jeff w
October 19, 2009 at 1:28 pm
They will give you are receipt for the value of your car and you just fill out the proper space on your tax return.
Cheri B
October 19, 2009 at 2:12 pm
PepsiLime has the right answer. I volunteer with a similar program, so I have become very familiar with the rules and the 1098-C.
CarVolun
October 19, 2009 at 3:07 pm
YOU NEED TO ASK THEM TO GIVE YOU A RECIPT. YOU MAIL THAT TO THE IRS AND UR DONE
andrespb
October 19, 2009 at 3:18 pm
You just deduct the value of the car ( or the percentage that the IRS allows you to deduct) when you fill out your income tax forms.
BE SURE to get a written something or another ( receipt? charity receipt?) from the charity when you give them the car – else, you can’t deduct anything. these days, most charities will just give you a piece of paper with their name, the date, what you donated. Very few put a value on what you donated.
nickipet
October 19, 2009 at 3:52 pm
They will issue a receipt for the fair market value of the car (this is usually more than you would’ve gotten if you tried to sell the car on your own) Simply declare the amount of the charitable donation on your income tax return, and if asked to do so, simply present the receipt.