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