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July 30, 2008

Car Donations Can Still Net Tax Breaks

Although a change in the tax law in 2004 reduced the tax deduction donors can receive for most car donations, donors can still claim the full Kelly Blue Book value for cars given to a charity that uses the car or sells it at a discount to someone in need, reports The Wall Street Journal.

The newspaper says a 2004 tax-law change has caused confusion among some donors, and many charities that have relied on car donations for income have seen a big drop in such donations.

Melwood, a charity in the Washington, D.C., area that serves people with mental and developmental disabilities, has seen car donations — its primary source of income — drop about 50 percent since the tax law changed.

For people interested in receiving the higher tax deduction for their car donations, The Journal directs readers to Opportunity Cars, a network of more than 150 nonprofit groups that distribute vehicles to low-income families.

Wednesday July 30, 2008 | Permalink

Comments

1. Most local Rescue Missions like those that belong to the Association of Gospel Rescue Missions provide their donated cars to low income families which, as noted, is the exception to the rule. Here at Sunday Breakfast Mission, Wilmington, DE we provide the vehicles donated at a price 20%-40% below Bluebook price to low-income families. Our donations have been severely reduced due to the impression given by the government that people’s vehicle donations will receive only an auctioned value (much below value). Your local Mission, providing hundreds of thousands of meals, 10’s of thousands of nights shelter, and many other services are in great need of your vehicle.

   — Thomas J Laymon    Jul 31, 10:04 AM    #

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