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