New IRS Rules for Vehicle Donation

The new Internal Revenue Service regulations for vehicle contribution went into consequence January 1, 2005. “The new regulations have got significantly changed the amount most givers can subtract for their car donation”, according to Karenic Campese, chief executive officer of cars4charities, a national non-profit car contribution center. “The old law allowed the giver to subtract the just market value of their donated car. They were allowed to utilize a pricing usher such as as the Kelley Blue Book or the National Automobile Dealers Association Usher to determine the just market value of the car.”, states Campese. “Now, people who donate older, less valuable cars can subtract up to $500.

Those who donate more than valuable cars can only subtract the amount the charity sells the car for. In most cases, the amount the charity sells the car for is less than the Blue book amount. In order to vouch the giver the best tax tax deduction possible cars4charities now put a minimum merchandising terms on better vehicles.” According to Campese, "This regulation change have resulted in a large lessening in the number of more than valuable cars being donated to charity and a large addition in number of less valuable cars being donated."