What are the new IRS tax rules for car donation to charities?
The American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004. This is a summary of impacts to your next car donation. In 2005, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale. What this means to you. If the fair market value for the donation is over $500, then you must wait until the actual vehicle is sold by the charity before claiming a donation value over the $500 dollars. For more info see the IRS home page at www.IRS.gov More IRS used car donation information. The IRS expects to issue more guidance on this rule early in 2005. To find out if new guidance has been issued see the IRS web site. Otherwise see the following IRS documentation urging caution in vehicle donation: IRS Officials Urge Care for Those Making a Car Donation. How do I get a accurate fair marke
