[bh3chevy]

I can't believe it. My wife likes to play those radio station contests and she gets registered and we go stand in the freezing cold for an hour while they draw out people's ID until they get to the last name. What do you know she wins a 2007 Toyota Prius Hybrid !! We pick it up next week. We were just talking about getting a new car - something with really good gas milage. This thing get 60 mpg in the city and 50 on the highway !! I do have a question for you guys - does anybody know how the taxes work on these type of winnings ? Also we were thinking of donating our '95 Lumina to charity - any ideas on that would be appreciated. Thanks.

[onovakind67]

You have to pay taxes on the maximum potential value of the car. Here's a story about a guy who won some airline tickets and declined the prize because the taxes were more than the tickets were worth.

http://online.wsj.com/public/article...l?mod=rss_free

[Bgonz 69]

It will easily cost you $5000 maybe more depending on the STICKER price. A good friend won a new 92 camaro off the boardwalk and it cost him a little over 5k in taxes and dealer fee's. And it was a stripper model to boot !!!!



bob

[onovakind67]

Originally Posted by Bgonz 69

And it was a stripper model to boot !!!!

Gotta love those stripper models, just don't let your wife know...

[Blade]

They gotta get u somewhere!

[ScottB]

Originally Posted by bh3chevy

I can't believe it. My wife likes to play those radio station contests and she gets registered and we go stand in the freezing cold for an hour while they draw out people's ID until they get to the last name. What do you know she wins a 2007 Toyota Prius Hybrid !! We pick it up next week. We were just talking about getting a new car - something with really good gas milage. This thing get 60 mpg in the city and 50 on the highway !! I do have a question for you guys - does anybody know how the taxes work on these type of winnings ? Also we were thinking of donating our '95 Lumina to charity - any ideas on that would be appreciated. Thanks.

Let me know what mileage you actually get. I guarantee it wont be anywhere near 50 on the highway, unless you trade it in on VW TDI.

[3forme]

Merry Christmas!!!

[fdny37]

Congratulations, I think I would sell the lumina and use that money to pay the taxes on the Prius. BTW I own a 2006 Prius and have had two others before this one and I currently get about 46mpg on average per tank. The car doesn't get 60mpg city but will get very close to 50mpg on the highway. I averaged 49mpg highway on a trip from Vegas to LA. It is a great little car and you will enjoy very much. Send me a PM if you like to know more about the car. Thats it in the background.

[mstehle]

The tax benefit on the charity donation of the Lumina should go a long way to off set the taxes on the Prius, plus the charities can really use the help. That would be my vote. One way or the other even if it costs you a little out of pocket you are going to do well in the long run. You have a new car that if cared for properly will last you a long time, and no car payments. That should free up some cash for another Camaro!

Your local United Way or other charities like the lung association should be able to help you with the car donation.

Mark

[DjD]

Use extreme caution on donating a car to charity... Not that it isn't a noble idea but not always wise... From the BBB Dec 2004 Newsletter

Donating your car, before the 2005 tax rule changes. Upcoming 2005 changes in the tax rules for car donations will, in many cases, result in lower charitable deductions for such gifts. As a result, donating a car before the end of 2004 may present another alternative giving option. Be mindful, however, to check out the charity's activities and also find out how it will benefit from the donation of your car.

The charities most eager for cars and make themselves the most accessable (advertising) are usually the ones to stay away from. I know of one group (they call themselves an agency) that formed as non-profit and then accepted donated cars. They were somewhat picky about what they would take, it seems they used the cars as personel vehicles, really did very little charitable work and sold just enough so they could write a check to another charitable agency to satisify their non-profit status. Nobody involved owned their own car...

[BonzoHansen]

My Mother donated my Dad's trucks when he decided to stop driving. They sent her a docuemtn that shows the exact price they got for the vehicles, which handles the loopholes. Check the IRS website for instructions.

[novaderrik]

how much of a tax benefit can you get by donating a $2000 car?
you'd be better off selling it for $2500, then donating that money to charity..

[67 RSS]

Congrats...
A pal of mine donated a car to a group seeking used vehicles- similar to what Dennis suggests. The car was later found abandoned on the streets of East Oakland.
My friend became the recipient of a number of parking tickets as the car was never registered to the new owner. I believe the city was also seeking towing damages for removal of the car.
He was able to resolve the issues, however this is likely the last car he will ever "donate".

Lane

[Camaro Dave]

Congrats! Selling your other car to a private party might be your best bet since cash in the hand is always a better deal. I've looked into donating cars for charity and it is not what you think, since you can not write off the full value for the car on your taxes.

[Brian Lewis]

Selling the car is better than charity, ie
Sell a car for $2,000 gives you $2,000 in cash
Tax Deduction from Donating a $2,000 car is going to be your tax rate, ie 10-15% usually, so you will only see a $200-$250 savings from donating a car!
Selling the car gives you $1,750 MORE