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Itemized Deductions Schedule-A


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Old 03-02-2012, 03:02 PM
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Vehicle (car) donation to charity

I donated my old car to a 501 (c) (3) last year. After answering the questions on the Kelly Blue Book website about the condition, the value of my car for private sale was $700 (trade in was a bit higher). A few months after donating my car, I received a donation receipt from the charity with the VIN and date of donation, telling me simply that the proceeds from the car were less than $500.

Am I able to take any type of deduction for this donation?



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Old 03-03-2012, 07:52 PM
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“Am I able to take any type of deduction for this donation?”-----> Section 501(c)(3) of the Internal Revenue Code specifies the requirements for an organization to be considered tax-exempt. When you make a donation to these organizations, the Internal Revenue Service allows you to take a tax deduction for your contributions. Your total annual contributions cannot exceed 50 percent of your adjusted gross income. However, a limit of 30 percent of your adjusted gross income applies to certain types of charities. All charities fall in either the 50 percent limit group or 30 percent limit group. Charities subject to the 50 percent limit include churches, educational institutions, hospitals, governments and private operating foundations. Charities subject to a 30 percent limit include veterans' groups, fraternal societies and nonprofit cemeteries. Your car donation is tax deductible, up to the full fair market value of the vehicle (if the charity keeps the vehicle) or up to the value for which the charity sells the vehicle, provided it is made to a legitimate 501(c)(3) charitable organization. Be sure to check that the organization to which you donate your car has current tax-deductible status from the IRS. When you file your tax returns for the year in which you donate your car, itemize car donations along with any other deductions on Sch A of 1040 ;UNLESS you itemize your deductions on Sch A of 1040, you can’t deduct your donation on your return.



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