In November 2014, my client donated her car to a 501c(3) organization. In April 2015, the Non-Profit sold the car and sent my client the proper paperwork with the sales price. Question: In what tax year should my client report this donation? Should I amend her 2014 tax return? Or should I amend her 2015 tax return? Thanks.
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Amend tax year 2014--See Pub 526Originally posted by Lady Tabor View Post -
Need to use Form 1098-C
Assuming "the proper paperwork" includes the required Form 1098-C . . .the end value of the donation may hardly be worth the paperwork.
You have to file the obligatory Form 8283, "check the box" in Part I Section (b) for a vehicle donation, and then provide all of the relevant information from said Form 1098-C.
In recent years the IRS has pretty much put an end to any (significant) tax benefits for vehicle donations. You probably can now come out ahead on Craig's List!
FEComment
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Just completed one - what a PITA for $ 760 donation - Contribution was end of Dec 2016, but vehicle was not sold until Jan 2017. Organization completed paperwork for 2016.
At least I can attach the PDF documents to the electronic file.
SandyComment
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FYI for your clients in the future who want to donate a vehicle. I tell my clients to sell the vehicle and give the sales amount to the charity. More likely than not, the charity will wholesale the vehicle to a vehicle auction company. The usual amount is $500. The the client's vehicle is worth more than that it is foolish to donate it. Charities are not in the business of selling cars and unless they use it themselves the donor will barely benefit from the donation.Believe nothing you have not personally researched and verified.Comment
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Yes, gone are the days when the car didn't even run, was towed away and the TP wrote off $5K!Comment
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