The current economic crisis has hit everyone hard. With most Americans cutting back on spending, car sales and donations to charities have plummeted. At the same time, the demand for help from charities, particularly those that assist low income and homeless citizens has increased sharply.
The passage of bill HR 6727 will help alleviate some of this strain by repealing the limitations to vehicle donations which were enacted by Congress in 2004. Under this bill, taxpayers would be allowed to deduct the Fair Market Value up to $2500 for their car donation, and the appraised value over $2500. Currently, taxpayers are only allowed to deduct on their itemized federal return up to $500 or what their car sells for, whichever is greater. Since the passage of the changes in 2004, car donations to charities have decreased by a staggering 67% and the resulting revenue to charities has decreased by 25%.
Passing this bill will be the equivalent of an economic stimulus package. It will provide a much needed incentive for taxpayers to donate their old car to charity and purchase a new or newer one. The result will be a valuable tax deduction for taxpayers, increased car sales and more money to charities. The trickle-down effect will help everyone. It will be a win-win-win situation.
I am asking everyone involved in the automotive industry, everyone associated with a charity and every taxpayer, etc. to join me by writing, calling, emailing or faxing their Congressmen, Congresswomen and Senators and urging them to pass bill HR 6727 immediately!
Thank you very much!
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