Tuesday, February 28, 2006

cantonrep.com-"Charity-lemon mill squeezed

cantonrep.com: "Charity-lemon mill squeezed
Sunday, February 26, 2006
By Ralph Vartabedian Los Angeles Times

Got a used lemon to unload? For years, the federal government allowed owners of rundown vehicles to donate them to a charity and then declare them as tax write-offs — often based on unrealistically high values — and saddling many low-income buyers with defective cars while cheating the IRS on taxes.

After growing abuse of this little-understood system, Congress last year enacted legislation to stop the tax abuse and force major reforms in the nonprofit sector. The new rules apply beginning with last year’s donations filed on this year’s tax returns."

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