Cashing in Cars

By: Alana Adams
By: Alana Adams

Roland Granius was at the Salvation Army Tuesday afternoon to get rid of a car, but cash in on a pretty good tax break of getting fair-market value as a deduction on this year's tax return.

"Right now it's to my advantage for tax reasons to do it now as to next week."

But as Fred Hyatt with H&R Block explains, this is the last year for those deductions.

"After the first of the year, if the car is valued at more than $500 and you donate it to a charity and then they in turn sell that automobile, instead of getting a fair market value, you can only deduct what they have sold it for."

With only a couple days left to cash in on the tax deal, the Salvation Army is seeing many walk through their doors with a car to donate, but Maj. John Tharp is worried with new tax regulations, people won't be as quick to give.

"Unfortunately, it does mean a pretty good amount of money in our budget that we realize from the sale of the cars. The money goes back into our programs to help defray expenses of other assistance that we give the people."

For Granius, donating this week is his only option. He says he would think twice before giving up the car next week.

"Hurry up and do it before you can't get the tax advantage anymore."


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