Jobs Act Charitable Giving ImpactJobs Act Charitable Giving Impact

Rorie M. Sherman Editor in Chief

The American Jobs Creation Act also tightened rules for charitable contributions of vehicles and patents. As David T. Leibell and Daniel L. Daniels of Cummings & Lockwood LLC in Stamford, Conn., report: Buried in the 600 pages of the act are two provisions that limit charitable deductions for gifts of vehicles and patents. These provisions aim to curb abuses regarding over-inflated deductions for these kinds of gifts.

Before the law, a donor who contributed a used vehicle worth less than $5,000 to charity was entitled to a fair market value deduction based on the value listed in an established used car pricing guide. Similar rules applied to contributions of boats and planes. Donors were required to obtain ...