Donating a car to charity

[robby]

I have a question about donating a car to charity. I read on this site that it is better to do it before next year and I understand the reason. My question is can I deduct the book value if the charity keeps the car to use and doesn't sell it?

[jeffrey]

You will need to get paperwork from the charitable organization that says they are using your car and not selling it. If this is the case, then you are allowed to take the book value deduction. Almost all donated cars to charity organizations are sold.

[robby]

Thank you. Is there a way to know before you donate the car whether the charity plans to use it or will sell it?

[terry1156]

The best idea would to be to just ask the charity before you donate. If your car is in working order then there might be some that would use it, but if it isn't, then it is doubtful that they would.

[pneely]

You can only deduct the full book if the charity uses the car, gives it to another person, or makes "material improvements" to the car. Most donated cars are sold at auction, so then you can only deduct the sale price at auction minus the auctioneer's cut.