Posted on Friday 27 August 2010
The new US charity tax laws that came into effect in the year 2005 were meant to safeguard donors from double taxation and also improve the situation when it came to car donations. The donations would be ably tracked down by the federal government and ease taxable income deducted to ensure that the right persons received the cars donated.
The working of the tax law is swift and effective and has helped the majority of donors to be able to track down the usage of the car that they gave up for donation.

The tax law indicates clearly that the tax deductions that could be claimed for a car would be up to five hundred dollars if the car is sold for less than the five hundred dollars. But if the car is sold for more, you are eligible to claim full tax deductions at the value of the car. This gives you the unique opportunity to do two things…
1. Get out of the taxman’s noose,
2. Get one hundred percent donation to the car charity of your choice.
The tax deductions have also been generally agreed upon that in case the car is used as a program car, that is if someone in need of a charity car is given the car for use, then you are allowed to claim up to full market value tax deductions for the car you donate and the receipt given to you by the car donation charity will act as the tax receipt. Furthermore, for vehicle above the five thousand mark, you are allowed personal or independent appraisal.








