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?
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.
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.
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
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.
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