Tax Change May Cause Decrease In Car Donations
Posted December 31, 2004
RALEIGH, N.C. — A new tax law is threatening to run a Raleigh charity out of business.
Wheels for Hope takes donated cars and sells them at huge discounts to people who, otherwise, could not afford them.
However on Saturday, there will be less incentive for people to donate their cars. On Jan. 1, a taxpayer can deduct only the amount that a charity receives when it sells the vehicle, which could be significantly less than the fair-market value.
Wheels for Hope had a donation drive Friday and collected almost two-dozen cars.