113 Maple Road — Lexington, SC 29073 — Phone: 356-1963

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.

They will have to let you know one of two things:

  1. If they sold it - how much money they received at sale or auction. That will be the value of your donation. They must notify you within 30 days. OR
  2. They must inform you, in writing, that they are using the vehicle themselves. As long as the vehicle is being used by the non-profit organization, you will be able to use the Blue Book or Edmunds value.
For more information: A Donor's Guide to Car Donations.
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