bmcper 
CEO/Auditor
Posts: 309
(12/29/04 1:36 pm)
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Vehicle Donations
If you are going to donate a vehicle to a non profit agency in order to take a charitable deduction, do it now before 12/31/04. As it stands now, you can deduct fair market value of the property. This law is going to change starting 1/1/05.
New Law Change
In 2005, any vehicle that is donated to a recognized non profit agency, will only get the deduction of what the vehicle sold for. In other words, if the FMV is $2000 but the vehicle sold for $800, your deduction is only $800. Paperwork from these agencies will be filed with the IRS so if you take a larger deduction, you will have to file an amended return and therefore pay the balance of taxes due.
So, if you are going to donate a car or truck, etc. make the arrangements now before the end of the month. As long as you have the paperwork in motion before this date, it will be deductible for your 2004 tax return and you can deduct FMV.
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