Car Donations - What you need to know Pt. 1

The American Jobs Creation Act (AJCA) has been thoroughly modified so that the amount of the deduction taxpayers can claim has to be proved.

No longer is the fair market value the only proof required, for a car that is donated. There are stringent rules to follow that have been set in place by the IRS. Rules that finally make it a level playing field for charities receiving the car donation and the donor donating. Now what is going to happen is that the price of the vehicle when sold by the non-profit organisation will be the amount used for the claim.

The taxpayer must get a written acknowledgement from the organisation in order to claim the deduction.