SDM Accounting Insights: Donating Your Vehicle To Charity May Not Be A Taxwise Decision

Episode 5 June 13, 2019 00:03:53
SDM Accounting Insights: Donating Your Vehicle To Charity May Not Be A Taxwise Decision
SD Mayer
SDM Accounting Insights: Donating Your Vehicle To Charity May Not Be A Taxwise Decision

Jun 13 2019 | 00:03:53

/

Show Notes

Let’s say you’re buying a new car and want to get rid of your old one. You’ve heard ads claiming you can get a tax deduction for donating a car to charity. But this may not result in a big deduction — or any at all. It depends on whether you itemize and what the charity does with the vehicle. For cars worth more than $500, the deduction is the amount for which the charity sells the car. However, if a charity uses the car in its operations or materially improves it before selling, your deduction is based on the car’s fair market value at the time of donating. You also must itemize deductions. You can’t claim a deduction if you take the standard deduction. Contact us for more details.

https://www.sdmayer.com/insights/blogs/individual-tax/donating-your-vehicle-to-charity-may-not-be-a-taxwise-decision/

Other Episodes

Episode

October 01, 2019 00:04:06
Episode Cover

SDM Accounting Insights: Corporate Governance in the 21st Century

The purpose of a corporation has shifted to reflect modern concerns. Instead of focusing exclusively on maximizing shareholder value, the Business Roundtable’s updated Principles...

Listen

Episode 7

June 20, 2019 00:04:17
Episode Cover

SDM Accounting Insights: Is an HSA right for you?

A Health Savings Account (HSA) offers tax-advantaged funding of health care costs. If you have a qualified high-deductible health plan, you can contribute to...

Listen

Episode 1

June 05, 2019 00:03:54
Episode Cover

SDM Accounting Insights: Measuring “Fair Value” For Financial Reporting Purposes

You must report certain assets and liabilities (such as derivatives and intangibles acquired in a business combination) at fair value, rather than historic cost....

Listen