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What do they base the value on? What affect does vehicle condition have on the value they assess?

My brother has a '99 XJ that has 215K abused miles on it (didnt keep up with normal maintiance). KBB and Nada say about $3300 with that mileage but fair condition, I'd say its more like poor condition.
 

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What do they base the value on? What affect does vehicle condition have on the value they assess?

My brother has a '99 XJ that has 215K abused miles on it (didnt keep up with normal maintiance). KBB and Nada say about $3300 with that mileage but fair condition, I'd say its more like poor condition.
You have a PM.
 

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I did it BEFORE they changed the rules.

I had a titties 93 Dodge Spirit with 210k, peeling paint and a thirst for oil. book value on it was $3200, netting me a nice chunk of change that year

I wouldn't even bother now.
 

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Charity Motors received a PLR from the IRS that lets you uses the old rules (FMV as determined by KBB or similar) if it is useable in their program. If it is junk you still only get auction price. Most of the other programs in MI are not covered by the PLR, so you have to wait until it is sold to determine the amount you can deduct on your tax return.

Not to sound like a geeky tax guy (I really am one), but FMV is basically what someone would pay you for the car. Assuming most folks are in a 15% or 25% tax braket, why would you give away a $1000 car for a $250 tax refund?? Unless it really makes you feel good, or you are trying to earn brownie points with the Almighty, it's a losing proposition. Besides, unless you already itemize your deductions you don't get $0.01 bigger refund.
 

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Discussion Starter · #11 ·
Thanks for all the info guys. Its pretty much what I figured that its not really worth it unless, like phittie1100 says, you're going for brownie points.
 
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