Thursday, 11 April 2019
On October 22, 2004 President Bush signed the JOBS bill (HR 4520) into law. Section 731 of this law placed new restrictions on car donations to charity. If you are planning to donate a car, it is important to note these changes to the tax law that went into effect on January 1st, 2005 to make sure that you will receive the tax benefits that you expect from your car donation.
TITLE VIII: Revenue Provisions - (Sec. 884) Title VIII revised the rules for claiming tax deductions for charitable donations of motor vehicles, boats, and airplanes valued over $500. It limits the allowable amount of such deductions to the gross proceeds received by the done charitable organization from the sale of the donated vehicle.