Anita donates a used car to a qualified organization. She bought it3 years ago for $9000....

Anita donates a used car to a qualified organization. She bought it3 years ago for $9000. A used car guide shows the fair market value for this type of car is $6000. However Anita gets a form 1098-C from the organization showing the car was sold for $2900. The vehicle was neither used nor improved by the organization given nor sold to a needy individual. If Anita itemizes her deductions, what amount csn she deduct for her donation?

Expert Solution

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

ekkarill92 answered 1 year ago

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