Cash for Junk Car?

[tomscholfield.livejournal.com]

Anyone ever used those Cash for Junk Car Services? I am considering it, we have a car that needs too many repairs and we are not sure if we should donate and take it off of our taxes or simply get one of these Cash for Car services to come by and take it away.

Any opinions?

Comments

[laryu.livejournal.com]

If you choose the donation route, be aware that the IRS rules are a bit tighter than they were in the past. The basic rule is if the charity sells the car, you can only deduct the proceeds from the actual sale (and the charity should provide you with that receipt after the sale). If the charity uses the car, then you can deduct the fair market value. And there is an additional form to file with your tax return, for in-kind donations over $500, on which you demonstrate how you calculated fair market value.