You can give your car to charity and deduct the gross proceeds from the sale if the proceeds are for more than $500.
If the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer’s claimed value is limited to the gross proceeds from the sale.
The charitable organization must notify the donor within 30 days of the sale of the amount of the gross proceeds. However, if the charity adds improvements to the vehicle, the charity must notify the donor within 30 days of the contribution. If the charity betters the vehicle then the donor may deduct the vehicles market value.
Actually, it is much better if the Taxpayer can deduct the vehicle’s market value, because there normally is quite a gap between perceived market value and actual proceeds, and this difference can literally be thousands of dollars.
One car donation center states that it has processed over 500,000 car donations since 1992, which adds up to about 30,000 cars a year.
Did you know that you can also donate boats and RV’s?
So if aunt Dora dies, and leaves her jalopy in the driveway...
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