topic I donated a car and received Form 1098-C with the "Gross proceeds from sale" amount the Donee received from the sale. What do I use for "Method Used to Determine Value"? in Deductions & credits

I donated a car and received Form 1098-C with the "Gross proceeds from sale" amount the Donee received from the sale. What do I use for "Method Used to Determine Value"?

null81 — Sat, 01 Jun 2019 21:17:46 GMT

You will use the amount reported on Form 1098-C as the va...

Leonard — Sat, 01 Jun 2019 21:17:48 GMT

You will use the amount reported on Form 1098-C as the value of your donated car. Your method is the stated value by the charity. The link below has information that you will find useful.

https://turbotax.intuit.com/tax-tips/charitable-contributions/how-do-i-estimate-the-value-of-my-donated-car-for-my-tax-deduction/L7sxKBKcw

Re: You will use the amount reported on Form 1098-C as the va...

gjmoneypants — Sun, 28 Feb 2021 06:29:36 GMT

This does not answer the question. TurboTax asks for the "Method Used to Determine Value." There is a pulldown menu and the user has to choose from the following:

No entry

Appraisal

Average share price

Catalog

Capitalization of income

Comparative sales

Consignment shop value

Present value

Replacement cost new

Reproduction cost less depreciation

Thrift shop value

The question is: which of these is the right answer when the gross proceeds from sale are provided by the donee's 1098-C?

Re: I donated a car and received Form 1098-C with the "Gross proceeds from sale" amount the Donee...

ToddL99 — Sun, 28 Feb 2021 16:48:40 GMT

"Comparative Sales" would be the correct "Method Used to Determine Value".

The Donee sold the vehicle, either at auction or by way of advertising for buyers. The proceeds from that sale would be comparable to the sales proceeds for like-kind property. "Comparative sales" is the most accurate description for how the value is determined.

Re: I donated a car and received Form 1098-C with the "Gross proceeds from sale" amount the Donee...

lychee — Thu, 24 Mar 2022 00:21:54 GMT

"Comparative sales" doesn't seem quite accurate. Is that Intuit's "official" advice or your workaround? Shouldn't there be an actual stated value choice? The charity reported the value based on actual price received at auction.

Re: I donated a car and received Form 1098-C with the "Gross proceeds from sale" amount the Donee...

MaryK4 — Thu, 24 Mar 2022 00:37:35 GMT

Determining the value of donated property would be a simple matter if you could rely only on fixed formulas, rules, or methods. Usually it is not that simple. Using such formulas, etc., seldom results in an acceptable determination of FMV. There is no single formula that always applies when determining the value of property.

This is not to say that a valuation is only guesswork. You must consider all the facts and circumstances connected with the property, such as its desirability, use, and scarcity.

"Actual Price received at Auction" is a less accurate amount because it is based on market conditions.

@lychee