Read This before Donating that Used Benz Mercedes
Doing a good deed was once a win-win situation. You could donate your used Benz Mercedes to a charity that found a good home for it and you would enjoy the tax benefits. But times have changed.
The federal government no longer wants to pay car owners the inflated prices they deem for their donations. Apparently, some people were taking advantage of the system by saying their car was worth thousands more than its actual value.
In 2005, the government changed those laws. Now, if you donate a car worth more than $500 to a charity, you can only deduct its actual selling price instead of its alleged market value. That sounds fair, but there’s a catch. Say you donate your used Benz Mercedes that’s worth $10,000 to a charity. If they sell it for only $1,000, you can only deduct $1,000 on your tax return.
As a result of the changes, it’s really no longer an attractive option to donate your expensive Mercedes vehicles to your favorite charity. It might be more trouble to sell it to a private buyer or trade it in for a newer vehicle, but it’s definitely worth the money you’re going to save.
Chalk it up to another way that the government makes everything so difficult.
Filed Under: Mercedes-Benz Vehicles
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