Why is my vehicle donation not giving me a dedcution?

[damonbacheller]

My mother recently bought a new car and gifted her old one to me, with the understanding I could benefit from donating it by gaining a deduction.

The vehicle was successfully donated and auctioned for a sale of $1,350. I received the Form 1098-C with all proper information. When I went to deduct it in turbotax, it returned a deduction of zero ($0.00). Why? Is it because the vehicle was gifted to me?

The terrible thought here is that my mother, on fixed income, could have sold the vehicle for a similar amount. All of the paperwork and effort that went into donating it is seeming to amount to a loss, quite frankly.

[DDollar · Accepted solution]

The reason you are getting a deduction of zero may be due to what you entered as the purchase price.  Since your mother gifted the car to you, you may have entered "$0.00" for the  purchase price.  TurboTax using that amount to determine your basis in the vehicle, which determines the maximum amount you can deduct.  Since your mother gifted the car to you, your basis is her basis. Therefore, you should enter what she paid for the vehicle in the box for Purchase Price.  Don't worry if you don't know exactly what she paid for it, just estimate it (but make sure it's more than the $1,350 it was sold for).

[damonbacheller]

That fixed it. I did not presume to be the purchaser, and as the giftee, entered zero.  After entering the amount originally paid, the deduction applied. Thank you.

[DDollar]

You're welcome! I'm glad I was able to help.  Thanks for using TurboTax!