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Hello,

I've done quite a bit of searching, both here and on the IRS page, but can't seem to find the answer.

My dad gave me a car as a wedding present. Last year we decided to give up on repairing this car time and time again. So, we bought a new car and donated the old car to charity.

Now, I'm preparing my taxes. The old car had a blue book value of $1,300. However, because the value of the donation is over $500, I have to report my cost-basis. I can't figure out what my cost-basis is. This car was a gift to me, although my dad did incur a cost. Can anyone give me some advice on what I should report as the cost-basis? Thank you in advance.

Phoebesnow
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phoebesnow writes (in part):

Now, I'm preparing my taxes. The old car had a blue book value of $1,300. However, because the value of the donation is over $500, I have to report my cost-basis. I can't figure out what my cost-basis is. This car was a gift to me, although my dad did incur a cost. Can anyone give me some advice on what I should report as the cost-basis? Thank you in advance.

I reply:

Are you sure it was a car and not a taxicab? And did you get it from your dad or your grandmother? ;-)

Neither question is relevant to the tax question you have asked. When you receive property as a gift, you take the donor's basis and holding period. The loss is a personal loss, so it's not deductible. The charitable contribution, as I believe you know, is the fair market value of the car at the time you donated it to charity. --Bob
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