Forum Thread

is there a limit on the vehicle donation tax break?

Reply to ThreadDisplaying 4 Posts
  • JFoster
    2021-03-18 05:47:12 PM
    Not Logged In
    Are you sure you want to delete this post?
        
    I've never done it before, but I may have to one of these days. I was wondering if there is a limit on the value of a vehicle that is to be donated? I mean, I've heard where you can even donate a vehicle that doesn't run. So, if that's the case. Does the government give you a tax break on the full amount of which that vehicle was valued?
  • KellyF
    2021-03-22 04:39:11 PM
    Not Logged In
    Are you sure you want to delete this post?
        
    Well, if you donate it to a charity and it sells your car for $500 or less, you can deduct $500 that or your car's fair market value, whichever is less. However if it sells for more, then you can claim that exact amount your vehicle sold for. I hope that answers your question.
  • JFoster
    2021-03-25 07:55:53 PM
    Not Logged In
    Are you sure you want to delete this post?
        
    Yeah that sounds about right. It's definitely worth it if you have a vehicle you no longer need.
  • JaredS
    2021-03-26 12:40:01 PM
    Not Logged In
    Are you sure you want to delete this post?
        

    It all depends what the charity you donate it to sells it for.

    My wife and I donated our second car that we realized we hadn't driven in nearly a year recently and our local food bank was able to auction it for just under $5,000. We got a tax form that listed the car and what they sold it for a couple weeks after that.

    I'm not sure if there's a limit because if someone is willing to pay $100,000 for a sweet RV some rich person donated at auction then, as far as I'm aware, that rich person would be able to claim the $100,000 as a charitable donation.

    Please correct me if I'm wrong though, because this is just an educated guess!

Reply to ThreadDisplaying 4 Posts