If you've been thinking about donating your used car to charity, don't drop the idea just because of last year's law that put the squeeze on big-ticket donations. That law curbed your potential to be aggressive in placing a high value on the donated item. But by taking a different route, you can still get your money's worth.
Strategy: Arrange a "bargain sale" of the item to a qualified charity. Unlike a straight charitable donation, you'll earn cash back from the charity, plus a sizable deduction based on the item's fair market value.
The charity wins, too. It gains an asset that it can use for its own purposes or resell at a reasonable price. A number of groups actively pursue bargain sales of boats and cars on a regular basis (see box at right).
How it works: When you sell assets, such as cars or boats, to a qualified charity at a bargain price, you treat part of the transaction as a sale and the other pa...(register to read more)