New law affecting vehicle donations:
American Jobs Creation Act of 2004 will alter the current rules for contributions of used motor vehicles, trailers, boats and planes effective January 1, 2005.
If the claimed value of the donated vehicle exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited in their claim for the deduction to the gross sale.
This means the new legislation does not change anything for donors claiming their vehicle is worth $500 or less OR for those donors not planning to make a tax deduction claim.
How will this affect you?
After your donation, if the gross sale amount of the donated vehicle is more than $500, you will receive a post card from the Car Donation Program that will provide you with the gross amount of the sale price of the donation.
If you are confused about this, please consult your lawyer, tax consultant, or financial advisor.