Policy regarding tax deduction for car donations
The policy regarding the car to donate for tax deduction is not as straightforward as other charitable donations. The tax relief depends on the donor’s claimed value of the donation as well as on the way the charity uses the vehicle. Thus you may not know the size of your deduction when you make your donation. In addition, as from 2005, the statutes for tax deduction for cars donated to charitable trusts have been altered. Now if the stated worth of the donated vehicle is more than $500, and if such vehicle is put up for sale by the charitable trust, then the taxpayer is limited to the gross profits from the transaction.
