how does it work donating a car to charity?
I just brought a new car and i do not need my old car anymore so i am considering donating my car to a nonprofit charity. what my concern is how would that work as far as my taxes go? would i claim it and itemize it as a deduction? would i get the blue book value of my car?
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October 20th, 2009 at 1:09 am
=The rules have changed because people have really taken advantage of this deduction and the IRS is now onto it. If the charity that you donated your vehicle to actually uses the vehicle then you can take the fair market value of it and they will send you a receipt. If they sell it at auction etc. they will send you a receipt of what they received for it which is the FMV and that is what you can deduct on your taxes. Save the receipt in case of audit.