The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/all-theyve-done-in-changing-the-rules-about-auto-22330721.aspx

Subject:  Re: Selling a car - Tax implications? Date:  4/8/2005  4:55 PM
Author:  GardenStateFool Number:  78437 of 132176

All they've done in changing the rules about auto donations is make it so that the amount of the deduction corresponds to the amount the charity actually receives, instead of some tricked-up blue book value.

But doesn't that fall into the same concept as ItsDeductible.com? For example, they allow fairly generous (from my standpoint) deductions for a LOT of things, which, if donated to Goodwill or Salvation Army, they would sell it for nowhere near as much.

Maybe that's different because the actual donation is made to a charity whose entire premise is to provide those goods directly to those who need them at those prices?

I don't know... I suppose it's not as if the charities are fixing up the cars and then selling them at a deeply discounted price to the families who need them.

I agree, it was a very bad idea to allow vehicles that hadn't run in years, had major issues, and were essentially scrap-heaps the "full" blue book value deduction. That's a scam.

But when you're donating a vehicle that could have a third-party appraisal value of X, and instead of X, you receive a $500 deduction at best, where's the incentive to donate in the first place, UNLESS the vehicle is ACTUALLY worth less than $500?

I get that it was a major scam, I really do. But for those people who donated vehicles and deducted their value in the same spirit that they would deduct donated furniture, etc., this put a real damper on the whole process.

I guess the idea is that blue book values of donated cars aren't always "tricked up."
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us