Can I get a deduction for a car I donated to charity, but was given to me in 2016?

[jrlewis]

I was given a car by a family member in 2016.  In 2017, I donated the car to Goodwill and received a 1098-C indicating the car was sold for $1700.  When I try to enter into TurboTax, it removes the deduction when I indicate I received the car as a gift (i.e. $0 purchase amount).  Can I get a deduction for this donation? 

[PaulaM · Accepted solution]

Your basis in the gifted car is the same as the family member who gifted it to you or the fair market value (FMV) when you received it. If you enter your basis in the field box for the purchase price, then you should receive a deduction for the donation.

In short, your 'purchase price' is not 0, but the family members basis or the FMV when you received it.

Basis for gifts:

If the stocks, bonds or property were received as a gift, the basis is the same as the donor's basis.

If you received a gift of value from someone and you sell the gift, here are the things you may need to know to determine your tax basis for the gift:

• the basis or adjusted basis of the property to the person who gave you the gift
• the fair market value of the property at the time it was gifted to you

[edited 2/6/18| 4;39 pm pst]

[PaulaM]

See edited answer above.