The more automated our taxes become, the less we focus on them. We assume that the automatic withdrawal from our paycheck is going to remain sufficient even though we know that Congress can make changes when the whim strikes them.
Make Necessary Adjustments
“Keeping an eye on”, among other things, means that when you find yourself owing federal or state income tax at the end of the year, you make an adjustment to the next year’s withholding.
Changes have occurred in recent years in regard to vehicle donations. Used to be that a charity receiving a car donation, a truck donation, an RV or motor home donation, etc. would simply go to kbb.com or a similar resource and see what the “market value” of the vehicle was. This became the amount of the tax write-off.
Congress Does What Congress Does
Congress came to realize that, frequently, vehicle donations would not sell for the amount of the deduction given. Sometimes the selling price was a fraction of the deduction taken. Congress doesn’t like that, so the rules changed – see what I told ya? – now you can deduct either $500, the market value or the actual selling price, depending on specified factors.
Whether you’re in Florida, Oregon, Hawaii or any of the other 47 states, we’ll do the paperwork and streamline your tax benefits.
Cars for Prostate Cancer is a charity of a different stripe.