Thanks for asking your question! I'm sorry to hear about your tax
issue and I'm going to try my best to help you understand or resolve it.
You could donate the car to any 501 (c) (3) organization that will take the car. Generally, the charity will take the car and then sell it and use the proceeds.
You can only claim a deduction
of $500 without submitting proof of the value of the vehicle to the IRS
. The amount you can claim is no longer the fair market value, but the amount of money the company sells the car for. They must submit to you proof of how much they sold the car for, and you would include a copy of that proof with your tax return
when you claim the deduction.
There is an exception; if you donate the car to a charity and they use that car to further their purpose, then you can write off the fair market value. For example you could give to 1-800-Charity Cars. This charity takes the car, fixes it up, and then gives it to the economically disadvantage.
So, to claim full fair market value you would need to give it to a charity that uses the cars directly to promote their mission.
Here's a great article about this subject. ARTICLEIf this helped, then rate my service as "excellent" so that I can be compensated for assisting you today. Otherwise, click "reply" or "continue conversation" for continued dialog with me.
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