Can you get a better TAX DEDUCTION if donated instead of selling?

I saw someone's topic about depreciation. Does anyone know if you could get a better tax deduction by donating the car? I probably have over 40K invested. Not sure what my tax bracket will be this year... If I'm in the 50% tax bracket maybe I can get $20K savings in taxes??? I'm gonna call my tax accountant, but since it's the weekend, thought I'd put it out there.

David

David,

Gee, I can help you out. Just sign the title over to me and we'll both be happy! I guess I'm a chairatble organization because I donate to the government and other noteworthy causes. I'll let you know where to send the title. LOL!

Just a note on donating and a tax write off, don't know if you have to get a certified appraisel to the current worth of whether you can include purchase price plus enhancements. Gut feeling tells me you would have to go with an appraisal of current worth. Sounds like a call to the IRS would be in order.

Good luck! Bruce

Donating an old car to charity sounds like a win-win situation in those radio ads, but it's a dicey situation at best. For starters, the charity usually winds up with a very small percentage of the car's appraised value (the organization doing the transaction gets the lion's share when they sell your car at auction). And, strictly speaking, the amount the charity ultimately receives is the amount you can claim as a deduction on your taxes...not the full value of the car.
Like Bruce said, talk to your tax advisor.

I can answer this one....it works great unless they check it and then it is a rotten deal.....the IRS gives you a deduction equal to the amount the charity received....and not a dime more