Car Donation Tax Law
Car donation tax law
Which means you will be looking at donating your vehicle to charity and acquire yourself a tax deduction, huh? Well back 2005 there was new legislation enacted through the government that made it harder for donors to claim a deduction for any car donation.
Car donations tax
There's been plenty of confusion in this area, some people have stayed away from giving these kind of gifts, but interesting enough the federal government finds that the new law has not done a great deal to curb abuses.
With this thought, if you are intending to claim a deduction with this duration of gift, that is a car donation, make absolutely certain that you simply follow the rules so that you usually do not end up however and become audited from the IRS.
Lots of people have had problems wanting to understand the new rules and so i am going to try break it down into simple terms for you now. Basically you can no more utilize the Fair Market price to determine your deduction. If your car is worth more than $ 500 you should wait for the charity to market the car and let you understand how much it received at auction.
If your car is worth under five hundred dollars, you could still make use of the Fair Market Value (FMV). There are a few other circumstances if the Fair Market Value may apply for example if the charity keeps the car for their own charitable purposes or sells it a price reduction to a person who's in need.