Tax Breaks For Hybrids, Alternative Fuels and Donations

Things not to miss this year include the Hybrid Cars and Alternative Motor Vehicles which provide a nice tax credit for vehicles purchased or placed in service on or after January 1, 2006. Also there are new rules regarding gifts to charity. To be deductible, clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better. However, a taxpayer may claim a deduction of more than $500 for any single item, regardless of its condition, if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances, and linens.