Tax Benefit for the donation of a used car

[21Rouge]

The dealer will give me $100 for our 13 year old Eagle Summit Wagon (5 speed, AC not working, 180,000 km) when the factory ordered Vibe arrives. I think one can donate a car to a school auto shop and receive a tax credit. Does anyone know how this works? Are there other options I might consider?Hey last time we bought a car the dealer gave me $50 for our 14 year old Toyota Corolla!

[Mr. Poopypants]

I've heard that donate a car thing isn't all it's cracked up to be, I would look into it before doing it.

[russ257]

I dont know how it works in canada but in the us prior to 2005 you could donate the car and claim blue book value. In 2005 you can only claim the value that the car sells for when they auction it off. I dont know how it works if they kept the car like if you donated a jeep to a park or something

[StampedeVibe]

I think the Heart & Stroke Foundation in Calgary (I could be wrong, I'm going off on memory here) would give you a $500 donation credit if you gave them a used car. Assuming that the school gives you a $500 credit and you were taxed at a combined Fed/Ont tax rate of 37%, you would get ~$185 back (next year that is).

[Altus]

In Ontario - it depends on who you donate the car to, and what they do with it in the end.For the most part, if they decide to fix it up a little and sell it at auction, you'll be sent a tax reciept for the sale amount of the vehicle.If they decide to junk it, you get a $50 tax reciept. (might be $100, but pretty sure it's $50)