Author Topic: Donating a car?  (Read 682 times)

PARedbeard

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Donating a car?
« on: September 02, 2015, 07:03:17 AM »
Hello All,
My wife and I are trying to downsize, and we want to get rid of our second car--it is pointless  to have two. The options are to try to Craigslist it or to donate it. Has anyone had experience donating a car? I've read up on the tax implications, and I am seeing a lot of ambiguity based on what the receiving agency does with it (use it, auction it, scrap it, etc).

Here's a bit more info: In any case, our second car has a KBB value of about $3,600, and we live in Pennsylvania. Additionally, we file jointly, and we are in the lowest Federal Tax bracket. Is it a good move to donate it and take the tax credit (as ambiguous as it may be), or to sell it? I'm anticipating that in my neck o'the woods, that I would not get the full $3,600 for the car.

Any input would help!

Catbert

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Re: Donating a car?
« Reply #1 on: September 02, 2015, 11:55:48 AM »
If you take the standard deduction on your taxes you won't get any tax benefit from this donation.  Even if you itemize, charitable donations are tax "deductions" not "credits".  If you're in the 10% marginal bracket at best you'll only save $360 on taxes.  Most donated cars end up being wholesaled so it will sell for a whole lot less than 3K.