Homework SourseAnita donates a used car to a qualified organization She bou
Anita donates a used car to a qualified organization. She bought it3 years ago for $9000. A used car guide shows the fair market value for this type of car is $6000. However Anita gets a form 1098-C from the organization showing the car was sold for $2900. The vehicle was neither used nor improved by the organization given nor sold to a needy individual. If Anita itemizes her deductions, what amount csn she deduct for her donation?
Anita donates a used car to a qualified organization. She bought it3 years ago for $9000. A used car guide shows the fair market value for this type of car is $6000. However Anita gets a form 1098-C from the organization showing the car was sold for $2900. The vehicle was neither used nor improved by the organization given nor sold to a needy individual. If Anita itemizes her deductions, what amount csn she deduct for her donation?
Solution
Fair market value of the car was $6,000
The fair market value can be deducted under following condition:
· If the charity auction is less than $500
· If the charity uses the car for its own work
· If the charity makes material improvement to the car
· If the charity sells the vehicle to a needy individual
In this case the above conditions do not apply.
Hence,
The itemized deduction for the car will be the sales value of the car . The car was sold for $2,900
Anita can deduct $2,900 as itemized deduction
