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Donate a car for a tax deduction

Tara Baukus Melloq_v2.gifDear 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

a_v2.gifDear 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.

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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.

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