New Rules for Donating a Car to Charity

Beginning on January 1st, 2005, anyone who donates a car or other vehicle to a charity must receive a receipt from the charity showing the actual dollar amount the charity sold the car for. You can then claim a tax deduction for your charitable donation, but your donation will be limited to the actual amount of money the charity got when it sold your car. Find out more in this IRS press release: "IRS Officials Urge Care for Those Making a Car Donation; New Law Changes Rules at End of the Year."