Starting New Year's Day, when you donate a car to charity, you'll need more than just the Fair Market Value or Blue Book printouts to establish the value of your donation.
Taxpayers have been taking these very large donations, encouraged by the aggressive radio campaigns of some charities. Yet, the charities haven't gotten anywhere close to the value we've deducted.
IRS is closing that gap. From Januaury 1, 2005, if you donate a
car to a charity, you won't be able to deduct more than $500
without documentation from the charity itself.