What is fair market value used vehicle donation?
Fair market value is the price a willing impartial buyer would accept for the car. This also takes into consideration that neither party is compelled to buy or sell, and both parties have reasonable knowledge of relevant facts that make up the transaction. What are the new IRS tax rules for car donation to charities? The American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004. This is a summary of impacts to your next car donation. In 2005, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale. What this means to you. If the fair market value for the donation is over $500, then you must wait until the actual vehicle is sold by the charity before claiming a donation value over the $500 dollars. For more info see the IRS home page at www.IRS.gov More IRS used car donation
