What used to be a popular tax gambit before 2004 has lost its fame due to the dramatic decrease in Car donations prices at charity auctions and sales. This was after the American Jobs Creation Act of 2004 was enacted, which limited the possible tax deductions a person could gain from donating any vehicles worth more than $500. The deduction is now determined by the car’s price it garnered for the charity.
If you are considering to donate cars to charity, here are some of the vital reasons why you have to give it a try:
Your vehicle will be used for a good cause