We get asked the question frequently if someone donating a car to us could claim a tax write-off, even if the donor had just received the car as a gift. The Answer is Yes!
So if you have an older unwanted car sitting in your driveway taking up space, but your taxes are such, that you can’t personally benefit from a car donation tax write-off, then gifting the car to someone that can benefit in a tax deduction, is perfectly OK.
This is because the person receiving the car as a gift now takes on the basis of the donor as if they were always the owner of the car and they can dispose of that car anyway they see fit.
If you’re a parent who has a son or daughter that is in need of a tax deduction then giving them your old car, truck, RV or Boat to turn around and donate to the Prostate Cancer Awareness Project will not only help your son or daughter with a nice tax credit, but will go a long way in helping in the fight against Prostate Cancer. This same scenario will work with friends and colleagues as well.
