Charity Car Donation: An Alternative to Selling?

Advice from a Porsche Driving CPA

purchases, and a full blown recession, do yourself a favor and put on those rose colored glasses, drive what you have and conserve your cash.

And of course, you are not my client and I am not your accountant (Tony, this doesn't apply to you) and this is not tax advice. You should consult your tax advisor before taking any actions that may have tax consequences. - Rick Jew

You knew this day would come, perhaps sooner than you thought. Age has taken a toll, and those curves that made your heart flutter - not so much anymore. And that figure, the one in the Kelley Blue Book, you've watched it's decline, and maybe it's time to do something before it dips again.

OK, can I really get Kelley Blue Book for my Porsche as a tax write-off if I donate it to a worthy charity, and will Uncle Sam pay me back for the thrill ride I've been on?

When it comes to donating your car for Kelley Blue Book value, you can forget it. The tax law now states that if the charity sells the vehicle, then whatever they sell it for is what you get to write-off. Since the charity wants the money as soon as possible at the smallest possible expense to

them, how much time do you think they'll put into selling your car? Be sure to get it in writing BEFORE you file - this is true for all donations. Getting the receipt after the fact does not count. No contemporaneous receipt, no deduction.

The only way you can get Kelley Blue Book is if the charity actually uses the Porsche in its activities. Good luck with that. I don't see too many Goodwill guys moving your worthless furniture around in a Porsche. Whatever made you buy that shag sectional anyway?

Consider giving the car to your kids or keeping it for a few more years to squeeze out every single dollar of your investment. With the cost of a new car, the increase in DMV fees, increase in sales tax on new