Filing Accrual Accounting for Taxes

Video Transcript

"Hi, Tom Choisnet, enrolled agent. This particular segment is on vehicles and appraisals. It wasn't too long ago that people were deducting the full market value of the old beater that wouldn't run anymore by giving it to charity. The IRS has caught up to us on that. They've tightened it up quite a bit. You can only deduct what the charity sells the donated vehicle for. Many times we see that they default to the $500 limit that is part of the rule. We did find a little loop hole in it though. If the charity uses it for its own use or if in the normal scope of the charity it's used by a needy individual, you can take the fair market value. There are some other minor restrictions to it that bear some examination. But that's the basic rule so we might be able to get a little bit better that what they tightened it to. Certainly the record-keeping is paramount. Thank you."