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September 21, 2007, Newsletter Issue #74: How Charities Use Car Donations


1

Tip of the Week

Find out how charities plan to use car donations. What the charity does with the automobile donation affects the tax deduction a donor can claim.
If the charity resells the vehicle, the donor can only deduct the amount received from the sale. If the charity uses the automobile donation for charitable work -- such as providing meals on wheels to shut-ins -- the donor may claim the fair market value of the vehicle.



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