In: Accounting
Fair market value of the car was $6,000
The fair market value can be deducted under following condition:
· If the charity auction is less than $500
· If the charity uses the car for its own work
· If the charity makes material improvement to the car
· If the charity sells the vehicle to a needy individual
In this case the above conditions do not apply.
Hence,
The itemized deduction for the car will be the sales value of the car . The car was sold for $2,900
Anita can deduct $2,900 as itemized deduction