| The IRS has changed the regulations on | | | | you can deduct is the exact dollar value the |
| donating vehicles to charities. If you | | | | charity receives when it resells the vehicle. |
| donated a car last year, you need to read the | | | | Put another way, you can no longer claim the |
| following to understand the new rules. | | | | blue book value of the car. The IRS wants to |
| | | | know what it was really worth, not what it |
| Giving Your Car to Charity - The New Tax | | | | would be worth if you hypothetically |
| Rules | | | | repainted it, got new tires, rebuilt the |
| | | | engine and so on. |
| Millions of people donate cars, boats, RVs, | | | | |
| motorcycles and many other forms of | | | | Charitable organizations are more than aware |
| transportation to charities each year. While | | | | of the new regulations and they will more or |
| doing a good thing is one motivation, reaping | | | | less take care of everything for you. To |
| a sizeable tax deduction is also a motivating | | | | donate a car, you simply arrange for delivery |
| factor. Unfortunately, the IRS has concluded | | | | to the charity. The charity will then resell |
| that more than a few people were deduction | | | | the car at some point in time. The |
| very optimistic values for their cars. | | | | organization will then will send you |
| Instead of auditing everyone, the IRS simply | | | | correspondence detailing the gross proceeds |
| changed the deduction rules for vehicle | | | | from the sale of the vehicle. |
| contributions to charity. | | | | |
| | | | This correspondence should, but is not |
| If you donated a vehicle of any sort to a | | | | required to, come to you as Form 1098-C. Yes, |
| qualified charity, but claimed less than $500 | | | | another form. Simply take the deduction for |
| as a deduction, you can stop reading. The | | | | the gross proceeds on Schedule A and attach |
| rule changes don't apply to such situations. | | | | the Form 1098-C to your tax return. If the |
| If you are claiming a deduction in excess of | | | | charity sends you a written letter, attach |
| this amount, read on. | | | | that to your tax return. |
| | | | |
| The new IRS regulations are pretty simple to | | | | While the above may sound overly burdensome, |
| understand. If you donated a vehicle to a | | | | it really isn't. |
| qualified charitable organization, the amount | | | | |