And honestly, you don't want to see your $3,000 sedan that you've spent so much time in be sold for $30 at an auction, tossed on the back of a truck and shipped to a far-off state for dismantling. Wouldn't you prefer your car "lived on" with someone else? It's hard to get rid of a car, but at least when you donate a car, tax deductions and the intangible good feeling of donating to someone less fortunate can ease your car-guilt.

Aside from being environmentally unfriendly when long haul transport is considered, there is the matter of a very small sale price. According to the latest guidelines, when you donate a car to charity, the tax deduction is limited to the amount it was originally sold for, if the car is sold during the first two years after you donate it.

After you decide to donate a car, tax deduction considerations behoove you to do a little calling around and find a local non-profit organization that can actually use your car as part of it's IRS-approved, charitable mission.

You will find that very few charities conduct their own car sales. However, educational operations often sell a well-refurbished vehicle at charity auctions. Such sales often command a price even higher than the fair-market value, even though one is limited by the extent of the (your) donation rather than what they did to spiffy it up. Donated cars for tax deductions is certainly not the most lucrative break on one's tax burden ("credits" are usually worth roughly, 3 times as much), BUT they can be very useful. Get the most out of yours and help some people in your neighborhood.

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