New car donation

[liberty]

A client just won a brand new car at the raffle drawing, valued at $23,000. He wants to donate the car to charity and take a deduction. The only way he can deduct $23,000 on his tax return would be for the organization to make a check on 5a of Form 1098-c. He plan to turn over the car to the organization right away. He and his wife are both over 70, standard deduction will be 26600 for 2018 tax return. so the benefit may not even matter.
Anyone has a better suggestion?

[spanel]

A client just won a brand new car at the raffle drawing, valued at $23,000. He wants to donate the car to charity and take a deduction. The only way he can deduct $23,000 on his tax return would be for the organization to make a check on 5a of Form 1098-c. He plan to turn over the car to the organization right away. He and his wife are both over 70, standard deduction will be 26600 for 2018 tax return. so the benefit may not even matter.
Anyone has a better suggestion?

Sell it, set aside the taxes for the $23000 and donate what he wants.

Chris

[iratax]

donate it

If he donates it to the charity, they will sell it and give him a 1099 for the amount they received. He can deduct all of that if he itemizes. I would clam FMV as the amount he sells it for not what the ticket price is.

[Rapid Robert]

prize income then deduction?

He's going to get a 1099-MISC for income for winning the prize, right?

[Jiggers]

Sell it, set aside the taxes for the $23000 and donate what he wants.

Chris

I agree. He will (or should) get a 1099 for the car won. Donating it will not give him a complete wash on the income that he has to report.

[TAXNJ]

Prior post concerning vehicle donation

http://forum.thetaxbook.com/showthread.php?28360-Donation-of-Vehicle&p=190470#post190470

[Gene V]

One more suggestion,

If they have a significant amount of RMD from a IRA, they could do a direct IRA distribution to the Charity for the $23,000 or whatever the 1099-misc is for--this should zero out the prize money and then sell the vehicle.

This is all speculation--not knowing if they even have a IRA.