Donating a car, boat, or plane?

Donating a car, boat, or plane?

IMG_2317Maybe it’s not worth the trade in value.  Maybe you need it hauled away.   Maybe you just feel like giving today.  If you donate your car to a charitable organization and want a tax deduction then here are some tips for you.

Here is the Donor’s Guide to Vehicle Donations, courtesy of the IRS.

You must itemize your deductions, rather than taking the standard deduction, in order to benefit from this because that’s where it goes.   To make itemizing beneficial,  you normally need high dollar amount of some combination of state and local taxes, real estate taxes, mortgage interest, other charitable contributions and possibly really high medical bills you actually paid during the year.  Those, plus other items that are less common,  must exceed the standard deduction you’d get without itemizing. For 2016 that would be:

  • Single $6,300
  • Married Filing Joint $12,600
  • Head of Household $9,300
  • Married Filing Separately $6,300 (and if filing this way, BOTH spouses must use the same method of either itemizing or taking the standard).

You must make sure the organization you are donating it to is a qualified charitable organization. Look them up here.

There are various rules for what some of proof you need to substantiate your donation.  See the Donor’s Guide for details but here are a few tips:

  • You should get a Form 1098-C that you need to have in order to complete your taxes if the amount deductible is more than $500
  • You need something in writing from the organization if the amount is between $250 and $500.

 

 

 

Linda Reinhardt

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