| Donating money and good is a great way to help | | | | put in the hands of the charities rather than the |
| out worthy causes while still helping yourself out | | | | donors. A group of them actually sent a letter to |
| on your taxes. Car donation is no different. Even | | | | the Treasury Secretary suggesting that people |
| though some of the car donation tax laws | | | | may be discouraged from donating when they |
| changed a few years back, this is still a great | | | | are unaware of their deduction amount. Not being |
| way to help yourself and others. So if you have | | | | able to weigh the cost to the benefit of donation |
| an old car and just aren?t quite sure what to do | | | | may discourage some auto donations. |
| with it, then consider a charitable donation of your | | | | If you do choose to make a car donation, you will |
| vehicle. | | | | find that the process is very easy. Most charities |
| As of 2005, the laws for car donation changed. | | | | that offer to take your vehicle will have |
| For motor vehicles, boats, and airplanes that are | | | | information on line or via phone about it. In many |
| valued at more than $500, things are a bit | | | | cases, in fact, you can fill out the appropriate |
| different than before. The allowable amount of | | | | forms on line to get the process underway. You |
| the deduction is now limited to whatever amount | | | | also will likely not even have to be home and the |
| the charity sells it for. The charity to which your | | | | vehicle may not even need to be in working |
| car donation is made is required to provide you | | | | condition. Many charities will come and toe your |
| with written acknowledgement of your donation | | | | car away if you can simply leave the title under a |
| within 30 days of you making it. If the charity | | | | floor mat along with the key and put it |
| provides any false or exaggerated | | | | somewhere accessible As soon as the car is sold, |
| acknowledgement, they can be penalized. | | | | you will receive a document in the mail letting you |
| As of the first of January in 2005, when you | | | | know how much you can write off of your |
| make a car donation, the tax write off is based | | | | taxes, legally. |
| on how the charity uses your donated car. If it is | | | | Since many charities rely on donations of all sorts: |
| sold, you can deduct the gross sale price. If, on | | | | clothing, cars, money, and even appliances, think |
| the other hand, the charity uses the car for what | | | | about what you are doing when you make an |
| the new law calls ?significant? tax-approved work | | | | auto donation. By donating your vehicle, you are |
| of charity, you would be able to claim the market | | | | helping out a worthy cause of your choice. In |
| value of the vehicle. Again, however, there are | | | | addition, you are helping yourself out. Sure, the |
| stiff penalties for falsified documents. | | | | tax laws have changed, but you can still benefit |
| Some of the charities, despite acknowledging that | | | | from your donation. The car doesn?t have to run |
| the old laws had problems, are skeptical of the | | | | to be eligible, so your write off might still be more |
| new car donation laws. Many of these | | | | than selling it for junk. So feel good about |
| organizations are concerned about what will | | | | yourself, help your tax line, and get rid of that old |
| happen when the tax deduction responsibility is | | | | junker by donating your car. |