Donating a Used Car to Charity - Be Careful

Posted by Andy
The IRS has tightened up in response to the abuses it saw over the years dealing with donating a used car to a charity to get the deduction of its fair market value. They rewrote the tax laws so that you can only get a deduction for what the charity sells the car for if it disposes of the car. Clark Howard notes that some charities are selling the cars to brokers at liquidated prices, and leaving the donors high and dry with a paltry deduction. The moral, do your research before you donate and find out what the charity plans to do with your car and where it will likely end up. More info about donating a car at Edmunds.com
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