General Question

rowenaz's avatar

Donate a car and claim it on 2007 taxes?

Asked by rowenaz (2431points) August 10th, 2007

What is the process I need to follow in order to donate my car? Has anyone done it? Is there anything I should watch out for?

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2 Answers

apb3's avatar

Check out womanmotorist.com. There is good article about it. I can email the link if you want but my iphone won't cut and paste the insanely long URL... Hint hint apple.

Basically it says if your above 28% bracket and donating a fairly valuable vehicle, it may be worth it. If you don't itemize, take the standard deduction or if the car is crap, just sell or trade in.

Also, one must be careful to dot all i's and cross all ts. Do not overvalue your deduction either. The aforementioned article talks about thisand I can verify from one of the guys under my command, the IRS will slap your peepee if you do...

mzgator's avatar

Go to a Notary and he or she will do an Act of Donation. In my state you may only donate to a close relative as a brother, sister, parent, grandparent,... The person you donate to does not have to pay taxes to transfer the vehicle, and you get a tax write off on the value of the car that was donated. All of the information needed to file your taxes will be contained on the Act of Donation.

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