Can I get another solar federal tax credit if I move?

Tax credit for a used car?

• My friend's car currently is broken down, it does not move. My friend is trying to tell me that rather than sell it to a bodyshop who can fix it, they can instead claim a tax credit of 3k. The car was purchased in New Jersey in 1999 for 20k and it was bought in cash, no financing etc.Is this true that you can get 3k credited on your taxes for a car purchased in 1999 that does not run? I feel like my friend is just telling me that they can get a 3k credit instead of selling it to the mechanic who offered to pay 2500 cash. I think my friend is making a mistake.Can someone please let me know if my friend is making this up about a 3k credit?How did she arrive at that number 3k?It sounds too round of a number and just happens to be 500 dollars more than what the mechanic is offering. thanks in advance I am a big fan of this feature on yahoo.

• Answer:

  Most charities (which is what you must make the donation to) wont take a car that's not running. As far as taxes go, you can get a tax deduction, not a tax credit, only if you itemize. Also, you must be able to prove the value of the vehicle which is usually done by reporting the amount received from an auction. In this case, your friend is better of selling it to the mechanic.