IRS Reminds Taxpayers About Requirement of Written Acknowledgment for Donated Cars

IRS Reminds Taxpayers About Requirement of Written Acknowledgment for Donated Cars: "IRS Reminds Taxpayers About Requirement of Written Acknowledgment for Donated Cars


IR-2005-149, Dec. 22, 2005

WASHINGTON — Internal Revenue Service officials today reminded taxpayers that they must obtain a charity’s written acknowledgment of their vehicle donation before they claim a deduction for the donation. For deductions of more than $500, the taxpayer is required to attach the acknowledgment to the taxpayer’s return for the year of the donation.

Effective for vehicles donated to charity on or after January 1, 2005, the American Jobs Creation Act of 2004 provides that, generally, a taxpayer’s deduction is limited to the gross proceeds from the sale of the vehicle by the charity. The charity must provide a written acknowledgment within 30 days after the vehicle is sold that notifies the taxpayer of the amount of the gross sales proceeds. "