New Tax Law Simplifies the Donation and Tax Deduction Procedure

Thanks to the new tax law, the IRS has taken the guesswork out of how to determine the value of your vehicle.

Beginning January 1, 2005 you may deduct the full price we receive for the sale of your vehicle. This greatly simplifies the process for you in several ways.

Under the new law, if your vehicle sells for more than $500 then the following applies:

* If your vehicle sells for more than $500 you’ll know exactly the amount you may deduct, eliminating guesswork. Thus you no longer have to research and come up with an estimate of the fair market value of the vehicle.
* The selling price of your vehicle becomes its fair market value and is what you can deduct on your tax return in most cases.
* This also eliminates the risk of you getting into trouble by overstating the value of your deduction on your tax return.
* This saves you both time and risk.

If you car sells for $500 or less at auction, you may deduct what you determine as the fair market value of your vehicle or the amount the vehicle sold for, whichever is less, and as long as that figure is under $500.00.