Donating a car or boat to a charity is no longer as attractive as it once was, and, since a 2005 tax rule change, the paperwork required is a lot more extensive. That means advisors need to examine their clients' reasons for giving, and make sure they act well before year-end.

Before the rule change, an individual could donate a car to a charity and deduct the fair market value as determined by Kelley Blue Book or a similar resource. However, since 2005, individuals have only been able to deduct the actual amount the charity receives from the sale of the car.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access