Would You Donate Your Unwanted Car To Charity -vs- Sell Cheaply? Tax Break Question

[slow&rusty]

Guys - I have decided to abandon my '78 Datsun 280Z project - sadly, as I simply do not have the time and as I am so picky with my cars, this particluar car is going to be a money pit (well they all are!) as well. And having 6 cars is ridiculous.

Soooo...

I could probably eBay it or sell it on Craigslist it for $1000 (tops).

-or-

donate it to Charity \Goodwill for a value that is twice as much and use that to help me significantly for my '09 Taxes....

What would you do?

Here she is....sniff....



Regards- Yasin

[fireant911]

Yasin,
Just last month I donated one of my trucks to the church. I had four vehicles to my name and only drove two of them with any regularity. My mother volunteers at the local parish and she inquired if there was a need - they were thrilled to get the truck. The tax break is good but helping others is much, much better.

[craigster59]

I'd offer $22k for that car. These are the highly collectible pre-Nissan "Datsun" cars. Known for their speed and handling, they are a sportscar enthusiasts dream.

I notice it has the very rare "WTF" wheel package. These alone are worth $2-4k. I understand donating it to raise money for the less fortunate is the right thing to do. You are Great people. Craig

[craigster59]

Okay, in Calif. you need to prove that the writeoff is comparable to recent sales (internet offers and sales are submittable). Just copy my post above and save for your records.

[RoninLB]

I read in a few places that the car write off donation is an IRS red flag.

[berettafan]

if the car is re-sold by the charity you have to show that $ for your deduction.

it's not optional and the charity has to send you a letter re. the sale.

[rfloz]

I have heard of a few problems with trying this - parking tickets, even accidents, attributed to the donor because the "charity" was very slow in changing title. I have also heard a couple of these "charities" turned out to be fronts for used car lots.

Obviously, your local group is less likely to be a problem than one of the slick TV outfits.

There is a web-site for checking up on charities and how they spend their money. Maybe someone can post it.

Caveat donor.

[berettafan]

not to mention you are taking an enthusiast car out of the enthusiast market place.

[scottmandue]

I'll probably get flamed for this but I was thinking of donating my 944 because, it has been sitting for over a year, I don't have the time to fix the water pump and do the belts myself, and it would cost $1000+ to have a mechanic do it plus cost of towing it to the shop.

Just thinking of it...

See my sig.

[Dueller]

Another thing to consider...IIRC charitable contributions are only deductible to the extent they exceed 7.5% of your adjusted gross income.

Sell the thing and donate the proceeds to charity if you're really altruistic.