Tip of the Week
When donating cars to charities for tax deductions, it is a wise idea to consult an accountant or contact the IRS.
New laws that took effect in 2005 require detailed documentation to verify the value of the donated vehicle, the transfer of the vehicle to the charity, and how the charity uses the automobile donation.
The IRS publishes references to help donors understand the new laws. They include:
-- Publication 526, "Charitable Contributions";
-- Publication 561, "Determining the Value of Donated Property."
Contact your local IRS office to get free copies, or consult with an accountant.
