Previously, taxpayers were permitted to deduct the fair market value of vehicles that were donated to charity. Starting January 1, 2005, the reporting requirements for donations of cars, boats, and planes became more onerous if the deduction is greater than $500. Additionally, if the charity sells the vehicle, within 30 days of the sale, the charity must give the donor a written acknowledgment that states how much it received from the sale. The allowed deduction is limited to the proceeds from the sale. If the vehicle is not sold, the charity must give the donor an acknowledgment within 30 days of the contribution and indicate in the acknowledgment its intended use of the vehicle. The taxpayer is now required to attach the acknowledgment to his or her tax return.