New Charity Car Donation Tax Law

In an attempt to curb inflated tax deductions, IRS revised the Charity Car Donation Tax Law. The revision eliminates loopholes and deficiencies that donors have learned to abuse, the more compromises to their old cars. The logic is simple: taxpayers would have beaten most of the surrender of their car in exchange for a substantial reduction in tax benefits.

Since its implementation, donors and taxpayers are at the price of their donated vehicle is limited to recoveringtheir actual value. In the event that the charitable organization or use a significant improvement in the vehicle, the donor / taxpayer can deduct the total cost of the market value of the vehicle, which can in turn be considered on their tax deductions.

Since the magazine Car Donation Tax Law entered into force, burglary in the number of donated vehicles were observed. charitable institutions have seen the dramatic decline in the number of cars to charity, and the attributethis to the fact that taxpayers can now base the benefits of tax exemptions for the estimated resale value of their vehicles. As a general rule, get much less than the expected price.

The Senate Finance Committee considers that an improper use of tax deductions for donations of cars is unfair to other taxpayers end up subsidizing the unfair deductions.

Despite the many criticisms of charities and donors remain undaunted by the former Committee. Donors believe that the new lawattractive as it once was, if the tax benefits were to exceed the prices that old vehicles are preferred.

Charities are still hoping that the slump is temporary. They look forward to the time to bring them back when a lot of donors are traded in their cars and that was before the new law was effective.