Is Government Intervention In Vehicle Donation A Good Thing?}

Is Government Intervention in Vehicle Donation a Good Thing?

by

[youtube]http://www.youtube.com/watch?v=BwlvpCHuUnQ[/youtube]

R.C. Bryan

Until recently it was a little too easy to find a way of cheating the tax exemption laws surrounding the donation of cars. However, in 2004 the government made the decision to intervene and changed the way in which vehicle donations are handled. A lot of people were cleverly finding loopholes in the auto donation laws and so the government decided to make it much more difficult to abuse the system in this way. This has stopped people from abusing the tax laws associated with vehicle donation in order to get bigger tax relief than they deserve. Unfortunately, this has effected large charities such as Goodwill Industries and The American Red Cross as they are receiving fewer vehicle donations as a result.

The new rules governing vehicle donation now have many people asking whether government Intervention has really been beneficial. I now face many more hurdles to jump if I decide to donate my car to charity. Many people now think that it is simply not worth the effor of filling in the paperwork and dealing with the many rules and regulations to claim the tax savings that they would be entitled to. The government has managed to stop people taking undue advantage of the system, that much is certain. Even so, many are now saying that they have gone too far, including the charities that benefit from vehicle donations. If you do decide to donate your car you will still be eligible for a a tax deduction, and more valuable the car the bigger the tax cut you will be entitled to recieve. To get the biggest tax reduction you need to get the highest price for your car. Your chosen charity will sell the car and the money raised will count as its market value in the eyes of the government. Because of this, you should choose a charity with a good track record of getting the best price for used cars. Many charities have the ability to get a higher price for a car than you would by yourself.

Are you a philanthropist looking for ways to give back to your community? Visit

charitydispatch.com

to learn more about how you can do just that by

donating your vehicle

for a good cause.

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Is Government Intervention in Vehicle Donation a Good Thing?}