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Tax Deduction Consulting: Car Donations Hockessin DE

Charitable deductions are a well known and common itemized deduction. When the deduction is an automobile, boat, or airplane, it is subject to some special rules. The car donation tax deduction requires the filing of Form 1098-C which is a form for Contributions of Motor Vehicles, Boats, and Airplanes.

Keith Al-Chokhachy, Certified Financial Planner(tm)
2751 Centerville Road
Wilmington, DE
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Title: Certified Financial Planner"
Company: Morgan Stanley Smith Barney
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Years Experience: 8
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Captive Insurance,Life Settlements,Pension for Highly Compensated Owners,Stock Market Alternative,Wealth Management,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Fee Only Portfolio Management,Wealth Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rol

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Bill Curry
1521 Concord Pike
Wilmington, DE
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Company: Curry Poole Group, LLC
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Investment Advisor Rep: Yes
Registered Investor: Yes
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BS
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JD
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Years Experience: 42
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Pension for Highly Compensated Owners,Stock Market Alternative,Reverse Mortgage,Medicare Planning,Annuities,Alternative Asset Class Planning,Investment Consulting & Allocation Design,Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Portfolio Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Alternative Investments,Life Insurance,Investment & Portfolio Man

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Brian K. Lureen (RFC®), CHFC, CLU
(610) 889-2066
5 Great Valley Pkwy Ste 334
Malvern, PA
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Heritage Advisory Services, Inc.
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Education: BS
Years of Experience: 21
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IARFC, FPA
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Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Stocks and Bonds, Mutual Funds, Mortgage Loans, CommOptions, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Charitable Planning, BuySell, Compensation Plans

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Globe Income Tax Service
(302) 998-2256
2116 Kirkwood Hwy
Wilmington, DE
 
Eller Tax Service
(302) 656-4787
2303 Lancaster Ave
Wilmington, DE
 
Joan L. Sharp (RFC®), CFP, CHFC, MSFS
(302) 324-5363
42 Reads Way
New Castle, DE
Company
Life Strategies, LLC
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Education: BAMSFS
Years of Experience: 8
Membership
IARFC, FPA, SFSP
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Invoice, Estate Planning, Retirement Planning, Tax Planning, Charitable Planning, Asset Protection, Compensation Plans

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Frank M. Levy (RFC®), CHFC, CLU
(302) 765-3500
205 Philadelphia Pike
Wilmington, DE
Company
Diversified Financial Consultants
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Years of Experience: 34
Membership
IARFC, MDRT
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Invoice, Estate Planning, Business Planning, Pension Planning, Executive Compensation Planning, personal Coach, Retirement Planning, Tax Planning, Employee Benefits, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Group Insurance, Charitable Planning, Education Plan, Asset Protection, Compensation Plans

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H&R Block
(302) 999-8100
2407 KIRKWOOD HWY
WILMINGTON, DE

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H&R Block
(302) 656-7212
106 S UNION ST
WILMINGTON, DE

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Eller Michael Income Tax Service
(302) 652-5916
724 N Union St
Wilmington, DE
 
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Tax Deduction Consulting: Car Donations

Car Donation Tax Deduction

When you itemize your deductions, donations to qualified charities or churches are allowed. The car donation tax deduction applies when you donate an automobile and is subject to special rules.

Charitable deductions are a well known and common itemized deduction. When the deduction is an automobile, boat, or airplane, it is subject to some special rules. The car donation tax deduction requires the filing of Form 1098-C which is a form for Contributions of Motor Vehicles, Boats, and Airplanes. It is possible to use another statement from the charitable organization in lieu of Form 1098-C as long as it contains all of the information that would be found on the 1098-C form.

If the value of the automobile is less than $500, the form 1098-C is not necessary and the contribution is treated as a regular charitable donation. If the value is over $500, the amount of the donation is either the gross proceeds from the sale of the vehicle or the vehicle's fair market value at the time of the donation. In the unlikely event that the fair market value is actually higher than your cost or basis on the vehicle, it must be adjusted under the IRS rules for "Giving Property that has increased in value."

When the charitable organization sells the vehicle, it should send a copy of Form 1098-C within 30 days of the sale. When this is done, it is the gross proceeds from the sale that may be deducted. This will be reflected on the 1098-C or equivalent statement. For example, if you donate a vehicle that has a fair market value of $6000 and the organization sells it for $2900, it is $2900 that may be deducted as a charitable donation.

An exception to this rule is when the charitable organization sells the vehicle at a considerably reduced price to a needy individual as a part of its charitable mission. In this case, the fair market value is what can be used as the deduction amount. Again, this information will be reflected on the Form 1098-C.

The f...

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