What is the story now on donating a car to charity?
In recent years donating a used car, boat, or airplane to charity became a very popular way to significantly reduce taxable income and thus the amount of income tax paid. You could donate that vehicle to a qualified charity and deduct it’s fair market value as a charitable contribution on Schedule A with your other itemized deductions. Fair market value was estimated by the charity using various sources, for example the Kelly Blue Book for cars. Often, the fair market value was far more than what the charity actually received when they sold the car.
