By donating your used vehicle to The Salvation Army, you will help get a person off of the street and onto the road to recovery. The proceeds from your vehicle donation directly support our long-term transitional housing program, called Operation Bootstraps, where men are fighting and winning the battle against drug/alcohol addiction, homelessness and other crisis situations.
Please review the following information from the I.R.S. regarding the new tax law that became effective Jan. 1, 2005.
Charitable Contribution Deduction Limited To Gross Proceeds. Effective for post-2004 contributions, if the claimed value of a donated motor vehicle, boat or plane exceeds $500 and the charitable organization sells the item without a significant intervening use (significant use to further its regularly conducted activities) or a material improvement (such as major repairs), the taxpayer’s charitable contribution deduction is limited to the gross proceeds from the sale (Code Sec.170(f)(12)(A)).
Fair Market Value Deduction . If the charity significantly uses or materially improves the vehicle, the donor generally may deduct the vehicle’s fair market value.
Acknowledgement Must Be Provided To Donor Within 30 Days. The charitable organization must provide an acknowledgement to the donor within 30 days of the sale stating the amount of gross proceeds. Alternatively, if the charity significantly uses or materially improves the vehicle, it must certify this intended use and duration and provide an acknowledgement to the donor within 30 days of the contribution (Code Sec.170(f)(2)(B) and (C)).
More IRS guidelines for charitable contributions can be found at their web site (Click Here) or by calling toll-free 1-800-829-1040.