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July 4, 2008, Newsletter Issue #111: Donated Car's Condition Figures Into Deduction
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Tip of the Week
If your car is inoperable, you can still donate to a charity but the deduction you can take will be different than if you donated a working car.
Some charities accept the inoperable vehicle donations, then sell the vehicle's parts. But donors should not expect to receive full value for tax deductions of junk cars or cars that do not run.
Policies for vehicle donations have toughened since 2005, when Congress enacted laws to prevent abuses in car donation programs for charity and the policies for accepting vehicles vary by charity. Some charities do not accept vehicle models older than 15 years. Others only require inflated tires on donated vehicles, so they can be towed and processed for their parts.
Contact charities for more information.
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