I have some unusual income this year and will have a big tax liablity. My current car is about to give out so I may want to replace it. can i get a tax deduction for my donation? Is it worth it?

You can still donate it. But there are stricter rules as to how much of a deduction you can take. People used to deduct the "blue book" amount for the car. Now you can only deduct the amount of value the charitable organization gets from your car.

Yes, but it has gotten a little trickier.If you donate to an organization that is going to sell the car and use the money, you must wait until they sell it and you deduction is limited to what they sell it for. They will provide you (and the IRS) with a form 1098C showing the proceeds of the sale.

You can safely deduct the market value of your car without documentation other than a receipt from the charity if you limit your deduction to $500. If you donate to charity, and the charity sells it for more than $500, you will get a 1098C from the charity and you can deduct that amount, regardless of what the car may have sold for on the open market.You have no control over what they sell it for. Except for the hassle-free aspect of donating the car, better to use it as a trade-in, or sell it yourself and donate the cash to charity.

It is better that you sell the car yourself and give the money to the charity.If you donate the car to the charity, they have to first sell it, and you can deduct only the amount realized by the charity. It may be much less than what you can sell the car for.

Yes you can take a deduction, but if the car is ready to give out, it won't be a very big one. After they sell it, they'll give you a form saying what they sold it for.When you donate a car, your allowable deduction is what the organization sells it for - on a car not in good shape, won't be much, and even if it was in good shape, it's usually wholesaled so goes well below blue book value. To take the deduction you have to itemize. Your tax savings at most is the amount they sold it for, times your tax bracket. So if they sold it for $1000 and you are in a 25% tax bracket, your tax savings will be at most $250.

Yes, however:1. If the charity sells the car, rather than using it, then you can no longer deduct its actual value, but can deduct the amount for which the charity sold it.2. If the charity uses it, rather than selling it, then you can still deduct the value of the car.3. If the car is about to give out, then both of the above two amounts are probably not much.

You can, but only you will know if it is worth it. The answer depends on how much your car is worth compared to how much you could get on a trade in or sale.

There are a few charities that take the donated cars and give them to low income people. If a charity does that, you can take the fair market value for the car. Of course, if it "is about to give out", fair market value might be small and the charity might not find it practical to give the car to a family. We occasionally do some fairly large repairs (done by volunteers or at discounted rates) that would not be reasonable for an owner to do.