Hi
The engine in my 2006 Sonata just died (it’s definitely not worth repairing). Generally, is it more beneficial for me to donate the car (for tax benefits), sell it for parts, or trade it in when I eventually get a new car?
to give you a general idea of the tax write off - I’m single and make between 30-40k per year.
Thanks in advance!
You posted in Oct, 2016 about your engine troubles. Then in Dec, 2016 you posted about an engine fire and now you post the engine just died. I suspect a Troll or someone just living up to their screen name.
Your donation will be essentially worthless to you. The charity will auction your car and send you a receipt equal to the proceeds from the auction. Since your car won’t get much if anything at the auction, you will get no tax benefit. If the car needed minor work to get it registered, you could donate it to a charity that would use it themselves or give it to a person that would use it. Under those circumstances, you could deduct the fair market value of your car. This is the way it used to be for all donated vehicles. Your car does not match the latter description. I suggest you sell it to a junk yard.
Or maybe someone with engine troubles would actually lead to a fire aka engine dying. I wish it were a joke myself.
If you don’t mind asking, exactly what went wrong with your engine?
Did the timing belt snap, and now you have extensive engine damage?
Did a piston decide to exit the block?
If you can itemize on your taxes, the deduction would be just like jtsanders said. If you can’t itemize, you will get no deduction. A deduction is not a credit. If you get a 300 dollar deduction it will lower your income that amount not your taxes. Your taxes would be lowered $45 or less.
With your income and the pittance a non-running car of that age is worth, donating isn’t going to get you anything meaningful. Sorry.