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Article: Used car donation program okayed. (irs briefing).(Brief Article)
- Article from:
- The Practical Accountant
- Article date:
- October 1, 2002
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The IRS has approved deductions for used cars donated under a charitable donation program run by a for-profit company. In two related private rulings, the IRS has described how a charity can set up a used-car donation program through a for-profit company and qualify donations for charitable deductions under Section 170.
In Ltr. Rul. 20023005, the Service says that the car donations made may qualify for a charitable contribution deduction because the donation program satisfies Section 170 (c) (2) rules that a charitable contribution may be claimed only for contributions made "to or for the use of" a qualified organization. The charity was the owner of a donated ...