Quote:
Originally Posted by rice_classic
Actually, that's exactly what I'm talking about. The assumption was that you wouldn't be donating a BRZ but some 20 year old beater in that scenario.
If your car is worth more, either trade-in or private party, than the tax break of donation, then to donate would make poor financial sense.
I figured that was obvious.
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yeah, sorry.. I must have mis-read your post. You said that if the car was worth so little that you had to lose money to trade it in, then you should donate it.
In this case that would be a bad idea. Some people assume that the tax write-off you get on a $15,000 car is worth $15,000 in your pocket. That is far from the truth.
The only time it makes sense to donate is when the blue book value of a car is like $2k or more but you can only really sell it for like $500.. In that case donating it *might* turn out to be more profitable for you.. and a good cause is nice as well.
Just be clear that the value of the car you donate is not what you'll see in your bank account after you pay your taxes.