I have a few questions. I donated my old car (needed some additional tax deductions, and it's for a good cause, right?) The charity left the value line blank. When looking up the value in Kelley Blue Book, do I go by trade-in or private party price? It's an '84 300D in good condition. Also, does anyone happen to know if it's messy to include deductions when filing taxes via a website?
Thanks. Glen Barry
This year the IRS will be going after non-cash charitable deductions. Too much abuse.
It's up to the taxpayer to justify the value claimed as a deduction. Since you didn't actively "market" the car, as would have occurred in a private party sale, and the charity simply took it off your hands the "trade-in" value is the defensible value, IMHO. You might also clip some newspaper ads as further evidence of market values for similar cars.
The fair market value is what you're entitled to. That's a transaction between a willing buyer and seller. A dealer isn't a willing buyer. The private party value is closest to the fair market value.
Your 300D is a valuable car... alot of people are willing to buy it in any condition. Most of those charitable donations are frauds... your car will end up in a dealer's lot.
That's funny-- I bought my '84 300D at a Charity Auction-- that's right, an auction where they sell donated cars. It needed a little body work, but the interior and engine were good. Of course I couldn't drive it, so after I bid it up to $1700 and won I found out 1st gear was slipping really bad on the way home. $300 bucks got me a used, rebuilt tranny.
Anyway, getting back to the original question, when I donated a car to charity a few years ago my accountant put the value at the middle, right between the high and low blue book prices.
--Geoff '84 300D
Tiger wrote:
Thanks for all of the advice. I donated the car directly to the National Kidney Foundation, so I know it's legitimate. If the car was valuable, more the better. I hope they got its full worth out of it. I guess I've reached an age where I'd rather save myself the trouble of haggling and at the same time score a little extra good karma. It sounds safest all-around to list the trade-in value, since they're cracking down on charitable deductions. I contacted TaxBrain.com with my question about deductions and filing online, and they said there won't be any problem, so I don't have to worry about that, either.
Thanks again, Glen
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