pure-awareness

[pure-awareness]

QnA for Junk Car Donation in 2020

I want to donate my car to charity. is it tax-deductible? if so how can I donate in Massachusetts?

Question asked bytraveller_usa: I want to donate my car for charity. is it tax-deductible? if so how can I donate in Massachusetts?

Answers received:

Answer by Last Ent Wife (RCIA) It depends on which charity/organization you choose, but yes most are tax-deductible.

This is one of the best sites for information, including a toll-free number to call for pickups in your area:

You can also donate to the National Veterans Center with a guaranteed tax-deductible form mailed to you.

And finally, saving the best for last, here’s a site specifically for your state which features free car pickup:

I think it’s great you want to donate to charity, especially in these rough economic times. Thank you!

How much of a tax deduction would someone get for donating their $2000 car to charity?

Question by Nuts of Wonder ®: How much of a tax deduction would someone get for donating their car to charity?

Replies:

Answer by Humpty Dumpty It depends on what region you belong to. Well, if that charity means the church, then according to me he ought to get nothing/

Answer by conusgypsy It depends on who you donate it to. If you donate it to a charity that uses the car directly, you can take blue book value. But if you donate it to a charity that auctions it off, you can only the amount that it sold for – the charity needs to report that amount back to you.

Answer by Mercedes They would get to deduct what the car sells for.

Answer by wg0z not much. just sell it.

Answer by Judy The deduction is what the charity sells it for, not its normal retail price. Charities typically wholesale donated cars. so they might get 00 for it. If they do, your tax savings would be 1200 times your tax bracket %, IF you itemize – in a 15% bracket that would be 0. If you don’t itemize you get no tax benefit.

So if you’re thinking that you will receive cash for junk cars without title for the tax deduction rather than to help the charity, don’t – you’d be much better off just selling the car.

Answer by SumDude Probably zero, unless you already fill out the schedule A, and then only to the amount that exceeds the standard deduction, times your tax rate. And the others are right that the amount for the Schedule A is what the qualified charity sells it for.

Answer by the kid The amount the charity sells it for.

Answer by tro first of all, you can only include in your itemized deductions the amount the agency notifies you with a statement on their paperwork of the value of the car after they sold it and regardless of how much they give you credit for it only reduces your AGI to a taxable income(if you can itemize) and it is not a direct refund of the amount of your donation