Automobiles


	OUR Mission uses your donated vehicles within our facilities or gives them to residents who need transportation to and from work instead of selling them, whenever possible. The new tax law, which took effect on January 1, 2005, limits the value of an automobile tax deduction if the vehicle is sold or auctioned by the receiving charity. Previously, by donating a car you could deduct "fair market value." Now you are limited to the gross proceeds from its sale or auction if it is sold. This greatly reduces the deduction for the donor, sometimes as much as two thirds. Autos sold at auction or wholesaled usually bring less money than the car is worth, and that figure is what must be used for the donor's tax deduction. Since January 1st, charities must notify car donors what their vehicles sold for and keep records of the sale in case the taxpayer is ever audited. Fortunately, the new law allows our donors to take a deduction based on "fair market value" if the Mission uses or materially improves the vehicle, as is the case when we use your donated vehicles here or when we give them to our residents. If you would like further information, please contact Mr. Dean Thiner at 209-722-9269.