Donate-your-car, as the name suggests, is the custom of donating cars to a charity organization when you feel that you do not want to use the car or you want to buy a new one for yourself.
This practice is very popular in the United States because of tax benefits associated with donating a car. It used to be that the donor may himself estimate the value of the car on which the tax deduction will depend, and then deduct that amount out of taxes owed.
On the other hand, the charity organization might receive the same price or less than the estimated value while trying to sell the same car.
But in the name of charity a number of people are into duping acts. In spite of being a non-profit business category, the charity actually produces a profit.
Since this is done in the name of charity nothing comes into limelight unless a really big issue surfaces.
Even though it is called a donation, and is associated with charity, the reality is that the benefits are not going into the right hands. Instead the dealers and financers of cars are making money out of it. Charity organizations are rarely audited, if they are, then there is usually a gap of one and a half years between two successive audits. It is in this period that advantage can be taken of the situation.
The Internal Revenue Service has come out with a new set of laws to take care of this practice.
The key changes to the new laws are:
1. The charity organization to which you are donating your car has to be a qualified one. If it lacks the qualification criteria then you are not eligible for tax deductions. There is a list provided in
Comments :
0 comments to “New Laws on Donating a Car”
Post a Comment