Dayna and I are having a bit of difficulty selling her Mustang. It's a great car with very low mileage. We've had it listed in Auto Trader for several weeks and have lowered the price once. With this challenge, I decided to investigate the tax code for donating a car to charity. I was curious to know how much we may save on taxes if we decided to give the car to a good cause.
This is what I found...
A Donor's Guide to Car Donations
I plugged the deduction into last year's tax return to estimate how much we may save in taxes in 2005. If I estimate the fair market value of the car to be $7000, then we'd save about $2000 on our 2005 tax return. Not sure it's worth it to donate. We may just wait it out and keep lowering the price until we get a buyer.
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