To Donate, or to Sell, That is the Question.
Dear Accounting Professor: I have an opportunity to donate a car to a non-profit organization for $2000 donation letter or I can sell the car to them for $1000 cash. Should I donate the car or sell it to them? I am single and work in the telecommunications industry. If all goes well for the rest of this calendar year, I anticipate that my income will place me right on the edge of the 22-24% tax brackets. Telephone Lineman Dear Lineman, Thank you for your question. The answer you seek is not as simple as one would expect. Part of this answer is contingent on the non-profit’s intended use of the vehicle and the non-profit’s tax-deductibility status. You can check the tax-deductibility status of your non-profit via the IRS’s database at https://apps.irs.gov/app/eos/ . At this site, you can see copies of the non-profit’s recently released income tax returns and determination letters from the IRS. I present the possible scenarios and my recommendations below: