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