What has changed in tax laws regarding donating cars?
Very little! The spirit of the law regarding car, boat or airplane has always been “the donor should take the fair-market value of the vehicle at the time of the donation.” However, Congress recently passed a new law regarding deductions of donated vehicles. This law is a framework, and as such is incomplete. It is up to the IRS and future court rulings to finalize how this law will function. What we offer here is a simple explanation of this law as of 1/31/05. 1. If you are donating a boat or plane, the philosophy – and practice – remains the same: deduct the fair-market value of your donation. Consult with your tax advisor to determine what the fair-market value of your donation is (and whether or not you need a professional appraisal as proof of this value). 2. If you are donating a motor vehicle that has a fair-market value of $500 or less, you will continue to write off the fair-market value of the vehicle. Consult your tax advisor to determine the correct deduction. 3. If you are
