| Any donation you make to help out a worthy | | | | regulations involved with car donation. |
| cause can also help you with your taxes. If | | | | |
| you have an old car parked in your garage and | | | | Even though the old laws had some problems, |
| you don't know what to do with it, car | | | | many charities are skeptical about the new |
| donation is a wonderful way to help a | | | | car donation laws. A lot of organizations are |
| charity. Although the car donation laws have | | | | concerned about what might happen when the |
| changed, this is still a good way to help | | | | responsibility of tax deduction is put under |
| yourself and others too. | | | | the authority of the charity rather than the |
| | | | donor. Some of them have actually sent a |
| In 2005, the laws changed regarding tax | | | | letter to the Treasury Secretary that |
| deductions on boats, vehicles or airplanes | | | | suggests that people may be discouraged from |
| that are valued over $500. Now, the charity | | | | donating cars if they aren't aware of the |
| must provide written documentation or | | | | deduction amount that will be allowed. This, |
| acknowledgment within the 30 days of | | | | they fear will mean that some donors will be |
| processing your donation. If the charity | | | | lost. Charities feel that donors must be able |
| gives an exaggerated or false statement, they | | | | to weigh the cost of benefit in order to know |
| can be fined or penalized. | | | | if it is enough for them. |
| | | | |
| Under the January 2005 rules, your tax break | | | | If you do decide to pursue car donation, you |
| is based on how the charity uses the donated | | | | will find out that the process is easy. You |
| vehicle. If the car is sold, the gross sale | | | | can contact most charities by phone or |
| price can be deducted. If the charity uses | | | | online. It is important to ask the charity |
| the donated car following the new law for | | | | you wish to get involved with for some |
| "significant" charity work that is tax | | | | specific and important information. This is |
| approved, you'll be able to deduct the market | | | | necessary in order to avoid complications and |
| value of the vehicle. However, some stiff | | | | also be sure you understand the process. It's |
| penalties will be charged for falsified | | | | not hard, but does require you to fill out |
| documents. The law is watching carefully | | | | some important information and get the car |
| those charities not following the rules and | | | | ready. |