auto
Donate a car for a tax deduction

Dear Driving for Dollars,
I'm thinking of donating my car to a church. It's a 1995 Nissan Pathfinder worth about $4,500. Would I be able to deduct that amount from my taxes?
-- Jason
Dear Jason,
Generally speaking, you can deduct a noncash item, like a car, when you donate to any charity that is a tax-exempt 501(c)(3) organization as long as you didn't receive something in return for the donation. So first, make sure the church is such an organization. However, there are special rules when you donate a car. For details, refer to Page 8 of IRS Publication 526 on charitable donations.
Bankrate's content, including the guidance of its advice-and-expert columns and this Web site, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this Web site is governed by Bankrate's Terms of Use.
Read more Driving for Dollars columns and Bankrate auto stories. If you have a car question, e-mail it to us at Driving for Dollars.
Create a news alert for "auto"