"Donate Car To Charity" Scheme May End
Sat Dec 18 16:47:12 EST 2004
> > Sound like a pretty good deal for everyone involved.
> Except for the taxpayers. The person donating the car gets a larger tax
> break than the charity gets a donation.
For someone in the 30% tax bracket.
A $1,000 book value car donation....would yield $333 break.
Are you saying that the charity doesn't get at least $333 from that vehicle?
(I know the broker gets a peice of it...but not that high.)
> If you are getting a deduction that is larger than you could actually sell
> the car for....
If I was in the 27% tax bracket....I would get a $270 break on a car that
the Kelly Blue Book says I could get $1000 for. That's not a larger
deduction than I could actually sell it for. According to the blue book.
>>aren't you actually inflating its value?
Well, since you can't *sell* the car and *then* donate it...you have to use
an estimate...either from an appraiser...or the famous Kelly Blue Book.
If you follow the rules....there's nothing wrong with it.
However, if you cheat, it's like anything else....it's the cheating that's
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