Car donation for tax write-off?
#1
Car donation for tax write-off?
I'm an independent contractor in need of some tax write-offs. It was suggested to me by an accountant that I purchase a car for a few hundred dollars, and then sometime during the year, donate it to a specific charity (a local church) that offers a minimum $1,000 tax write-off for car donations.
#2
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Won't work if you don't cheat. Your deduction limit is your basis/cost. Don't use that accountant. Sounds like one the IRS would look at all the returns he/she files. Shame on them for bad advice.
#3
I knew a guy that bought tax write-offs from a corporation that was selling them at 75% face value. These movie companies were given huge write-offs to move to a certain state after a certain storm caused a certain metropolis to flood. They would just sell the write-offs and use the cash.
#5
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Starting with your 2005 tax return, you will no longer be able to deduct the published fair market value of vehicles worth more than $500. Under the new rules, your deduction will be determined once your car is sold and the charity sends you a receipt indicating the exact amount your car garnered at auction
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