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TAX INFORMATION The new tax laws in the American Jobs Creation Act have placed certain restrictions on how much you can expect to receive from donating your vehicle to charity. Beginning January 1, 2005 taxpayers were told they could only deduct the proceeds that charity gets from the sale of the vehicle instead of the fair market value they were accustomed to in the past. Donors must receive a written acknowledgement from the charity that includes the sale price of the vehicle. In some cases, the donator is limited to using that figure as their tax incentive. However, if the charity uses the car for a charitable purpose, such as Goodwill's Workers On Wheels (W.O.W.) program, donor may continue to deduct the fair market value of the vehicle. In addition, here in Michigan, donors can take advantage of a new tax law that provides up to a $100 tax credit for their contribution to a program like Workers On Wheels. Because the vehicles used for the W.O.W. program are provided to individuals for the purpose of gaining or maintaining employment at a cost well below the actual value, donors may continue to deduct the private party fair market value. CLICK HERE for additional IRS information. Goodwill
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