I donated a car to a charity that had a blue book value of $2400, but, was told that it sold for less than $500. Can I get credit for the additional $1900.

[Aggiedog73]

How do I get credit for a car given to charity that was worth $2400, but, sold for $500?

[ReneV4]

You generally cannot claim an additional $1,900 difference for your car donation. When you donate your vehicle and claim a value of more than $500, your tax deduction is generally limited to the gross proceeds from its sale by the charitable organization.

However, there is a rule that applies to your situation. If a charity sells a donated vehicle for $500 or less, your deduction is equal to the lesser of $500, or the vehicle's Fair Market Value (FMV). Since your vehicle's FMV was $2,400, you are allowed to take the $500 deduction.

You can only claim the full FMV if one of these exceptions applied:

• The charity kept the car and used it regularly
• The charity made major repairs to the car
• The charity sold or gave the car to a needy individual at a significant discount price as part of their charitable purpose

[AmeliesUncle]

No.

As it turns out, you probably should have sold the vehicle yourself, and if you wanted to donate the proceeds to a charitable organization, you would have ended up with a better charitable tax deduction (IF you Itemized your deductions, rather than using the Standard Deductions).