Jim bought a new car. He donated his old car to charity. Can he claim the car he donated as a deduction on his income tax? Explain your answer.

Question

Ashleigh Berry

Business

4 October, 22:32

Jim bought a new car. He donated his old car to charity. Can he claim the car he donated as a deduction on his income tax? Explain your answer.

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Answers (2)

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Parker Mooney · Answer 1

Car donations fall in itemized deductions. This is a charitable deduction to reduce the tax liability for those who itemize. If your tax liability is less than the standard deduction then you cannot take the charitable deduction. The standard deduction is based on your filling status (I. e. Single, MFJ, Head of Household). If your tax liability is more than the standard deduction then you can take the charitable deduction.

Shaniya Jensen · Answer 2

He can claim the car he donated as a deduction on his income tax.

But he can't get a deduction of $1 for $1 there it is like a quarter or something.

This is as charitable donations reduce his total income in terms of taxes for the year. So he can claim it as a deduction on his income tax.