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Design Elements
A well-decorated room can still lack personality. To give your room a personality, choose from among these basic design elements, modify them to suit your tastes and implement them in a way which is just right for you.
1. A Theme - A...
Home Office Furniture - How To Set Up A Professional Home Office
Each day, more and more people are getting caught in the 'work from home' fever. Government as well as companies is quickly embracing this type of 'work from home' scheme as there are many benefits such as employee being able to spend more time with...
Shih Tzu - For The Love Of Dogs
I have wondered just who are the ancestors of the shih tzu. Like all other dog breeds, shih tzu ancestors most likely come from five choices: Grey Wolf, Golden Jackal, Coyote, African Wild Dog. It is hard to imagine our little shih tzu baby dolls...
What is Intution and How do I use it?
Intuition is an incredible resource and gift that we have been given to help us live our best life. Unfortunately, not many people know what it is or how to use it. The word intuition means “in to you” in Latin. Florence Scovel, a theologian,...
Where do you start when building a snake cage?
When I was making my first cage my wife Cheryl came out into the shed and asked me what I was doing. I mumbled something about "building snake cage" whilst ernestly trying to figure out some small detail or putting in an annoying screw (I'm not sure...
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Donating Cars To Charity - New Tax Rules
On June 3, 2005, the IRS released guidance on charitable deductions for donated vehicles. The American Jobs Creation Act (AJCA) radically changed the amount of the deduction taxpayers can claim for their donated car.
Fair Market Value v. Actual Sales Price
When donating a car to charity, a taxpayer traditionally was allowed to deduct the fair market value. The new law changes this valuation to the actual sales price of the vehicle when sold by the charity. The taxpayer is also required to get written and timely acknowledgment from the charity in order to claim the deduction
The AJCA does provide some limited exceptions under which a donor may claim a fair market value deduction. If the charity makes a significant intervening use of a vehicle--such as regular use to deliver meals on wheels-- the donor may deduct the full fair market value. For example, driving a vehicle a total of 10,000 miles over a one-year period to deliver meals is a significant intervening use.
The AJCA also allows a donor to claim a fair market value deduction if the charity makes a material improvement to the vehicle. Under the guidance, a material improvement means major repairs that significantly increase the value of a vehicle, and not mere painting or cleaning.
Interestingly, the IRS has also added an exemption not included in the AJCA. On its own, the IRS has determined that taxpayers can claim a deduction for the fair market value of a donated vehicle if the charity gives or sells the vehicle at a significantly below-market price to a needy individual, as long as the transfer furthers the charitable purpose of helping a poor person in need of a means of transportation.
If you intend to assert one of these exemptions, how do you determine the fair market value? Generally, vehicle pricing guidelines and publications differentiate between trade-in, private-party, and dealer retail prices. The IRS consider the fair market value for vehicle donation purposes to be no higher than the private-party price.
The new provisions of the Americans Job Creation Act certainly make it less attractive to donate a car to charity. Using the exemptions, however, you can still create a sizeable deduction while helping others who are less fortunate.
About the Author
Richard Chapo is CEO of Business Tax Recovery - We recover overpaid business taxes for small businesses. 80% are due refunds of $5,000 to $10,000 on past tax filings. Contact us now to find out how much you are owed.
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