Tax Advice: How to get the best tax benefit when deciding to sell or donate a car

Well, it is tax time again, and if you are like me, you are busily trying to figure out the best way to pay your taxes. Best, of course, means not only paying what you owe, but also making sure you have made the right deductions for the previous year.  Ensuring you handle your deductions correctly can mean all sorts of things, but one of the best ways to make sure you have the right balance is to make a charitable donation. And one of the best charitable donations is donate a used car to a charitable organization.

Unfortunately, recent changes in tax law have made donating a car a much more complicated process. Whereas you used to be able to get the full "blue book" value, today, that is only the case in certain situations. In fact, for most donations, you are most likely to receive only a few hundred dollars in credit vs. the thousands you received years ago. With this is mind, sometimes it is better to simply sell the car.

This helpful guide should assist you in making some of those decisions. Of course, you should always speak to a tax advisor for "real" advice...

How to get the best benefit Between Selling and Donating a Car (tax vs. cash)