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Vehicle Donations: Selected Charities Reported Mixed Experiences after Changes in Vehicle Donation Rules
Michael Brostek (au)
In 2003, it was found that many taxpayers’ estimates of the value of their vehicles, claimed as tax deductions, were in excess of the charities’ subsequent sales of the vehicles. Subsequently, effective Jan. 1, 2005, the rules related to the amount taxpayers can claim as a deduction on their tax returns for vehicles donated to charities changed. Under the new rules, in many cases the amount taxpayers are allowed to claim as a deduction is less than they could have claimed before the changes. Some charities that used vehicle donations as a revenue source said that the changes could lead to fewer donated vehicles and reduced revenues. This report determines how charities have been affected by the 2005 changes. Charts and tables.
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