Alert: Tax Law Changes Diminish Write-Offs of Vehicle Donations Jan. 1

A new tax law going into effect January 1, 2005 states that taxpayers will no longer be able to write-off a donated vehicle's Fair Market Value but rather the vehicle's actual sale price at wholesale auction, which is significantly less than Fair Market Value. The reason for the change is that government believes too many tax payers have over valued donated property, specifically vehicles.

To garner the highest deduction for a donated vehicle, consumers should consider donating their vehicle by the end of the year, before the law changes. Kelley Blue Book, the trusted resource for almost 80 years, has a check list and links to IRS documents to help taxpayers get the most from their donation and accurately determine a car's Fair Market Value. (www.kbb.com/donation)

   1.  DONATE YOUR VEHICLE BEFORE DECEMBER 31, 2004.  Tax law changes Jan 1,
       2005.  To write-off the vehicle's Fair Market Value, donate your
       vehicle by December 31, 2004.

   2.  DETERMINE THE FAIR MARKET VALUE OF YOUR VEHICLE.  The most accurate
       determination of Fair Market Value is Kelley Blue Book's PRIVATE
       PARTY Value and Condition Quiz.  Do not use the Kelley Blue Book Used
       Retail Value.  Do not use the value of a vehicle like yours from
       classifieds or pricing sites that don't make adjustments for mileage
       and condition.  Assess 'your' car's exact mileage and condition to
       avoid an audit.  Your vehicle's mileage and current condition can
       affect its value by thousands of dollars.  Print the Condition Quiz
       and Value report for your tax return.

   3.  MAKE SURE THE CHARITY IS A NAME YOU RECOGNIZE AND TRUST.  Be careful
       of 'sound-alike' charities.  Just because you've heard an ad on the
       radio for a charity does not mean it is legitimate.  Call the Better
       Business Bureau to determine if the charity you have chosen is a
       recognized organization.

   4.  ASK HOW MUCH MONEY THE CHARITY RECEIVES.  According to a government
       report, more than $34 million was donated in automobile revenue in
       2000, however, only 32% of the gross revenue was returned to the
       charity.  To work with charities that receive the maximum amount of
       return, visit www.auto-donation.com.

   5.  SIGN THE TITLE OVER DIRECTLY TO THE CHARITY OR THEIR AGENT.  Don't
       leave the title blank under any circumstances.  Many illegitimate
       charities ask that the title be left blank.  This practice may leave
       you liable for the vehicle months after it has been donated.

   6.  GET A RECEIPT.  When you make any non-cash contributions, you must
       get a receipt from the charitable organization including the name of
       the charity, their tax ID, date, location of the contribution.  Keep
       the receipt to justify your deduction.

  For more information and IRS tax forms visit www.kbb.com/donation.

SOURCE: Kelley Blue Book

CONTACT: Robyn Eckard of Kelley Blue Book, +1-949-268-3049,
reckard@kbb.com

Web site: http://www.auto-donation.com/

Web site: http://www.kbb.com/donation
http://www.kbb.com/