Donate Cars Before End Of Year

Taxpayers who hope to get a deduction by donating their cars to charity should act before the end of this year because tough new rules for valuing used-car donations go into effect next year.

Anyone who donates a car this year to a qualified charity can typically deduct its fair-market value. But if you donate a car next year valued at more than $500, and if the charity or a middleman later sells it, you typically can deduct only the actual selling price. It may be far below the market value in used-car publications.

Congress changed the rules because of concern that many people were deducting far more than what the cars were worth.

The website www.donateacar.com features a list of many charities that accept donations of used vehicles. In addition, the Arthritis Foundation, Southern Connecticut Chapter, accepts unwanted vehicles, including boats, trucks, and motor homes; call the toll-free number 800-905-4931. Have the vehicle title and vehicle identification number available when you call.

Big Brothers and Big Sisters in Connecticut accept cars at 800-859-6526, but warns that due to a slump in the used car and scrap metal markets, not every car will be accepted.

To donate a car, truck, motorcycle, bus, or plane to the National Kidney Foundation of Connecticut, call 800-488-2277(CARS).