In 2007 I donated a car to charity and I’m not sure how to deduct it . I did get a letter stating that it’s gone for under $500, so do I just claim $500? I’m not sure how this works. Any help would be appreciated. Thank you!
I donated a car to charity-How to do my taxes?
19
Mar
Tim
March 19, 2010 at 1:21 am
You claim the amount listed in the letter. It should have been a specific amount
v b
March 19, 2010 at 2:19 am
You use the amount show on the 1098-C when you fill out your itemized deductions.
If your itemized deductions are more than your standard deduction you may see a small reduction in your tax bill.
A special rule applies if the acknowledgment indicates
that the donated vehicle sold for $500 or less. In this
case, you may claim a deduction for the lesser of the vehicle’s
fair market value on the date of the contribution, or
$500, provided you get a written acknowledgment from
the charity that complies with the requirements described
under Written Acknowledgment For a Vehicle
Contribution Deduction of $500 or Less.
See IRS publication 4303.
Astrolion
March 19, 2010 at 2:24 am
The reason the letter might state that it has “gone for under $500.00″ is that when you file on a Schedule A for charitable deductions, any total deduction that is under $500.00 you do not have to complete form 8283, which contains a statement of value.
However, if you are single and do not have itemized deductions that exceed a total of $5,350 (10,700.00 if married) you would not want to itemize and therefore the charitable donation gives you no additional credit on your taxes.
LaNi
March 19, 2010 at 2:46 am
Use TAXACT!!!!!!!!!!! I have used them for years!! You can use it for free it’s easy and simple!! Let me know how it worked out for you if you decide to use it! Good luck!
http://www.taxact.com
MikeeyMan
March 19, 2010 at 3:26 am
To be safe, you should claim under $500. It’s an itemized deduction on schedule A.
T K
March 19, 2010 at 3:37 am
You claim the amount of the sale only.