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