Hello tax experts, Your kind comments, advice please. Car donated to Goodwill was sold. They say they need my SSn so that they can mail me a 1098-C that I would need to claim a deduction for the full sale price. Is this an IRS requirement? Thanks!
Have you calculated how complying with this request could possibly benefit you? Sometimes calculating the actual number with any degree of accuracy helps clarify one's thinking.
Even if the car sold for, $2500, or five times what you can deduct now, you might benefit from calculating what the extra $2000 in deduction will actually benefit you. It might work out to an amount in tax savings that is a pittance compared to the hassle and expense of freezing or locking your credit.
I highly suggest calculating that number before handing over your SSN.
Thanks everyone for your valuable input. And best wishes for a happy holiday season and a joyful, peaceful new year. haapai, thank you for your prattling; I even learned a new word! TheOtherMe, thank you for reminding me to browse in other forums for similar questions before posting.
Post by SouthernSusana on Dec 23, 2018 19:36:20 GMT -5
Didn't Trump virtually eliminate the value of itemizing by doubling the standard deduction? It might still pay off in your state, however.
When DH had an old car to get rid of, I told him to offer to sell it for $50. Offer something for free, and people will eagerly say, "Me, me." Offer it for a really modest sum, and you will weed out some of that while still helping someone who needs help
It turned out his car needed a new battery in order to run. The "buyer" was happy to turn it into a $100 purchase because he really needed a car.
Thanks Southern Susana, Tax reform doubled standard deduction but eliminated personal exemption. In addition, state & local income taxes and real estate taxes are limited to 10K. Unfortunately, the tax reform is not a win-win for many. Happy holidays!