What is best Donate vehicle, take the difference as a tax loss? Sell it for the $14,000 but can I take the difference as a tax loss? Take the $30,000 as a tax write off?

[TaxGuyBill]

In my experience, it is almost always best to sell the vehicle yourself.  If you then want to donate that cash amount to charity, great.

[VolvoGirl]

You can't deduct a personal loss on your return.  Was it used for business?

[Opus 17 · Accepted solution]

First of all, the only amount that you can deduct for the donation of a vehicle is the current fair market value, if you could only sell it for $14,000, then that is probably the maximum deduction value you can get.

 Second, you can only deduct the fair market value if you donate the vehicle to an organization that uses it as a vehicle. For example, if you donate to a charity that provides vehicles for the handicapped or the needy. If you donate to an organization that will sell the vehicle to raise funds, then the only amount you can deduct as a donation is the amount of proceeds the charity actually receives.  

The charity will report the disposition of the vehicle to you on a form 1098C, and you cannot take any deduction on your tax return without that form signed by the charity that indicates how they disposed of the vehicle and what proceeds they received. 

 For most taxpayers, a tax deduction will result in a savings of 15% to 28%, so if the vehicle is currently worth $14,000, you would save about $3500 on your taxes for donating it. 

 If the vehicle has been previously used for business, either in a small business or for employee transportation where you have taken the mileage deduction, the situation becomes slightly more complicated.