CONSUMER WATCH

By Iris taylor

Published: December 21, 2008

Donate quickly to receive tax deductions Time is running out.

The calendar flips to 2009 the middle of next week.

Hurry if you want to help the needy or a family member or your business one last time this year and get a deduction at tax time.

Donate your old vehicle now. You can donate your car to any charity that accepts vehicle donations by calling the organization directly.

But one person's junk car is a needy family's lifeline.

Call the Cars-to-Work Program, part of the Richmond Community Action Partnership, at (804) 788-0050, ext. 18.

So far this year, 22 needy families have purchased a low-cost car donated to the program. Its offices will be open tomorrow, Tuesday, Friday, Dec. 29 and Dec. 30.

Set up an appointment with Robert Cook, the program manager, who will bring a 1098C tax form to your home and pick up your car. You'll need to give him the vehicle title, then enter the car's market value on the IRS form and keep it.

Use these Web sites to learn the vehicle's fair market value: http://www.nada.com, http://www.edmunds.com or http://www.kelleybluebook.com.

Baltimore-based Vehicles for Change is another organization that accepts auto donations. It works with the Virginia Department of Social Services in order to help low-income residents and accepts vehicles from anywhere in Virginia.

Donate at http://www.vehiclesforchange.org or call (800) 835-3821. You must call and commit your vehicle donation by 11:59 p.m. on Dec. 31. Your vehicle will be picked up in January.

"We're looking for cars in good condition," preferably newer than 1996 with fewer than 130,000 miles, said Marty Schwartz, the group's president. "We take anything. But if it's got over 200,000 miles, it goes to auction."

If you donate your vehicle to a program that fixes and sells it to someone needy -- or the organization needs it -- you can deduct the full market value. If you donate it to an organization that sells it at auction or a junkyard, you can deduct only the amount that the organization got for it.

Buy some new office equipment that you need. Despite the recession, say your business posted an $8,000 profit.

You need a new computer server. It costs $5,000. Buy it by midnight Dec. 31. Then, at tax time, take an Internal Revenue Service Section 179 expense deduction, a form of depreciation, said Sheila Clark, director of operations at Peoples Income Tax Inc.

The provision allows you to deduct the full cost of the server -- or other business asset that you acquired and put into service in 2008.

Mail one last check to a charity and dig deep. Peruse the Better Business Bureau of Central Virginia's list of charities at http://www.richmond.bbb.org. Click "Charity Reports and Standards," then, "Local Charity Reports" to see an alphabetical list.

Call the BBB's charity hot line (804) 521-6944 for help.

Start a 529 college savings plan for you or your youngster. You can deduct up to $2,000 on your Virginia taxes only, Clark said.

Go to http://www.virginia529.com and choose among four plans or call (888) 567-0540. You can avoid fees depending on which program you select. Or you can go through a financial advisor.

Open a 529 for yourself if you're going back to school or taking courses now. If you start a plan with more than $2,000, deduct the excess in subsequent tax years.

Rummage through your household for items to donate. Look through your closets, toy boxes, attic and garage looking for items that are in good condition. Make a list and take snapshots of them, in case the IRS asks, Clark said. Get a receipt when you drop them off at Goodwill, Salvation Army or wherever you donate them. Ask for its valuation list or search "valuation guides" online.

Donate your gently read books. Call your local library and ask how much you can deduct for hardback and soft back books. At the Powhatan County library, for example, donated hardback books are valued at $10 each and soft back books are valued at $5. You'll get a receipt for use at tax time. Contact Iris Taylor at (804) 649-6349 or .