Tuesday, July 15, 2008
On July 14, 2008, Grant Thornton announced in a press release that the number of car donations has dropped by two-thirds and the amount of deductions claimed from these donations has dropped by nearly 80% since the 2004 law change that restricted such donations to charity. Here is an excerpt from the press release:
Recently released IRS statistics reveal the 2004 law had an immediate and drastic affect on car donations. An analysis of the new numbers by Grant Thornton’s National Tax Office shows that between tax year 2004 and 2005, car donations of over $500 dropped by two-thirds.
Over 900,000 tax returns claimed deductions for donated automobiles in 2004. In 2005, the last year for which the IRS has detailed data, less than 300,000 tax returns included such claims.. The total amount deducted for all car donations declined from $2.4 billion in 2004 to just a half a billion dollars the following year, a decrease of over 80 percent.
For more information on the press release, see "New tax laws dry up car donations" on the Grant Thornton, LLP website.
HAT TIP to Tax Prof Blog for this.