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Kars4Kids Kars 4 Kids If you get a vacation voucher, then you do not get a
31st of Dec, 2011 by User256251
The radio ad says "we’re a recognized 501(c)3 charity organization, so you’ll receive a maximum tax deduction. What’s more you’ll receive a free vacation voucher for a 3 day 2 nights”. However, U.S. tax laws allow a maximum tax deduction only if you do not receive a vacation voucher, or anything else of value in return for the donation. If you receives anything of value in return for the donation, then the deduction is reduced by the value of the vacation voucher (or anything else of value received in return for the donation).

The maximum tax deduction for giving a car to a charity is the value of the car (if the charity uses it) or the amount of money for which the charity sells the car (if the charity sells it). However, the donor can only deduct that amount if they receive nothing in return. If the donor receives a vacation voucher, then they are not allowed to take the maximum deduction. Instead, the deduction is limited to the value of the car (or the amount for which it was sold), minus the value of the vacation voucher.


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