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Xinjiang's medical industry becomes promising part of Belt and Road Initiative


German girl learns Chinese martial art in SE China's Yongchun


China launches first cargo spacecraft Tianzhou-1


Terraces shrouded by clouds in south China's Guangxi


China-made C919 passenger jet to take off soon


Redbud flowers in full bloom in S China

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Donate Your Vehicle To Charity and Determine Its Fair Market Value Autos Articles | June 29 Maury Wills Dodgers Jersey , 2008
Although the laws were changed in 2005 to reduce the proliferation of perfectly legal "tax fraud," there are still several situations where you may claim the actual "fair market value" of your car, tr...


Although the laws were changed in 2005 to reduce the proliferation of perfectly legal "tax fraud," there are still several situations where you may claim the actual "fair market value" of your car Kirk Gibson Dodgers Jersey , truck, boat, RV or trailer when you donate any to a legitimate charitable non-profit organization (NPO). You will find however, that the rules governing what is "fair market value" have also changed.


Until it was clarified Babe Herman Dodgers Jersey , many people (and paid tax professionals) thought this meant taking the "fair" amount from the Kelley Blue Book (or a similar estimation service), regardless of the actual condition of the vehicle. The IRS had different ideas about just what that was when they wrote the statute, but the wording was less than clear. The fair market value clause cost the IRS an estimated $640 million in 2000.


Also, consider what shape the vehicles donated by middle-class Americans are actually in when their owners finally consider donation. Such vehicles are very often in less than "poor" shape. Many third-party Yasiel Puig Dodgers Jersey , for-profit companies that acted as agents for charities were taking cars whether they ran or not (and advertising as such). The owner got to avoid a fee at the scrap yard, let someone else pick the car up for free and claim the fair market value as a tax deduction.


However, taking into account the actual fair market value of your vehicle is where the IRS noted the discrepancy in question. Not only were the agents skimming as much as 70% of the sale price of each vehicle right off the top in legitimate (though sometimes dramatically padded) "service fees," but the difference in real worth became apparent at the point of sale. Since most of those cars ended up on the wholesale market Corey Seager Dodgers Jersey , the price difference was even more acute.

r" rating in the Blue Book requires the vehicle be in 'running' condition. It is clear there was a major difference between what these vehicles would fetch if someone put a
Even the "poor" rating in the Blue Book requires the vehicle be in 'running' condition. It is clear there was a major difference between what these vehicles would fetch if someone put a classified ad in the paper and their fair market value, as someone who'd taken economics classes would understand the term. The laws were changed in 2005 to require a receipt of any gift valued over $250 as well as a written satement of what the car actually sold for (over $500) or what use it was put to. Therefore, if the car is sold as its first use after donation, you will only be able to claim the amount of the sale price that was actually given to the charity.