I donated when the tax rules were slanted to doing so. You donate to a charity. Someone picked it up. i think mine didn't start. and honestly, it started and ran the week before.
I got a receipt for the blue book value, most valuation.

I imagine the abuse at the time was people would buy clunkders on the cheap, donate it, and made money that way from the tax deduction.

As i understand the rules now is that you donate then you have to wait until the charity sells the car and you get a receipt for how much the charity received from selling the car.

From their website the tax rules have changed. If your car sells for $500 or less you get a tax credit for $500. If it sells for more, you get a tax certificate for the actual selling price. They no longer do blue book value.

I considered selling it out right and then donating the money directly. But I don't have anywhere to park the car, I need the space in the garage, I work 7-6 5 days a week and it's just too much hassle to try to sell it that way.

Thanks again for all the replies. I do appreciate it,

I don't understand what's in it for the charities to take a POS car. Do they fix and flip them, or give them to people newly entering the work force, or what?

Did it a few years ago with a Volvo wagon we had with a blown engine. At the time i thought we were going to be able to deduct blue book value, but in the end we only got a deduction for the value of what it sold for at auction, which was only about $500. I could have sold it to junkyard myself or parted it out for more, but it was convenient at the time to get it gone. In hindsight it was a terrible deal and I wouldn't do it again.

quote:

Originally posted by egregore:
I don't understand what's in it for the charities to take a POS car. Do they fix and flip them, or give them to people newly entering the work force, or what?

my understanding is yes

flip
fix,
scrap
part out

whatever gets the quickest $$

donated 2 of my fathers vehicles when he passed, both were worn slam out (previously totaled Camaro, pos, and a well worn shop van)

used the deductions on his estate/last year of taxes

No issues on my side. If you are expecting that it will bring more than the minimum donation value at auction, I would make sure you have it picked up well before you do your taxes as they may be slow to send you an updated receipt.

quote:

Originally posted by Rotndad:
I just bought a new(er) car to repalce my 1999 Honda Accord. The Accord has almost 200K in mileage and needs more repairs than it's worth. I don't want the hassle of selling it outright and am going the lazy easy way and donating it. The organization I called sends a wrecker, runs it through the auction and after small admin fees and towing fee the balance goes to the charity. I get a tax certificate for the donation.

Any pitfalls to worry about?

What are your experiences?

Thanks guys

Did it about 10 yrs ago for some disabled org. Wife did some online investigation and they were good to go. Gave us a blank tax deduction statement signed. We just filled in the going used rate and that was it.

Gave two vehicles to a local church group that fix them up and give them to people in need. As for the tax end I went on several online places and figured a reasonable value and gave that to my accountant who figured a value for taxes. No IRS problems so far.

Did it a couple years ago with a 95 Crown Vic, they came, picked it up no fuss no muss and I got a receipt.

 
I did it once, not quite the same situation as yours. I had a '56 Chevy 210 wagon that I had used as a daily driver for 12 years. Times changed, and I needed to get rid of it. Selling it was unlikely to get much, as it was not a collectible classic. So I ended up donating it to the local school system (auto shop). When I first called, the receptionist said "sorry we don't take cars more than 10 years old", so I said thanks, bye. Less than 5 minutes later, her boss called me back and said he would be right over with the necessary paperwork. IIRC, I could have claimed up to a $5,000 deduction without an appraisal. Still, to cover my butt, I hired an official appraiser and got a written appraisal (something like $3,750, I think), and I took that deduction as well as including a copy of the appraisal with my return. Never heard a peep from the IRS about it, and we got a significantly greater refund that year.