Expert deductions regarding your tax questions

Q: I heard that if I donate my dilapidated 1991 Saab to charity within the next two months, I can still get a tax deduction for 2002. Is this true? How do I determine how much I can write off?
J.W., Lincoln, Mass.

A: It's too late for 2002, but a donation anytime during calendar year 2003 is valid for your next return.

Jim Seidel, senior tax analyst at RIA, a New York-based provider of tax information, says you can deduct (as long as you itemize) the car's fair market value. For property contributions of more than $500, you need to be able to prove the acquisition cost; if it's more then $5,000 you'll need to include an appraisal form with your return.

Would it surprise you that some taxpayers have fudged the value of their beaters? The IRS has been focusing on auto donations in recent years, so Mr. Seidel says, it's not a good idea to claim too high a value. No sense in raising an audit flag.

Q: Can I deduct any expenses that I incur moving into a new home?
A.S., Cumberland, R.I.

A:Only in certain instances. For example, if the move is job-related and certain other conditions are met, you can deduct reasonable expenses of moving household goods and personal effects to the new dwelling, plus the cost of travel - including lodging - from old to new. You cannot deduct house-hunting trip expenses, says Seidel.

The good news is that you can deduct the expenses whether you itemize or take the standard deduction. The bad news is that qualifiers abound. For starters, your new job must be at least 50 miles away from your old home plus the mileage of your old commute. (For example, if your old job was 10 miles from your old home, your new job must be at least 60 miles from your old home).

You also must maintain employment for a certain amount of time at the new job in order to claim expenses.

Q: I got married at the end of August last year. Since we were single for most of the year, do we file jointly or separately? Our tax bill will jump if we have to file jointly.
L.C., Milton, Mass.

A: For tax purposes, your marital status is determined on the last day of the year. Since you presumably were still married on Dec. 31, 2002, your filing status can be one of two choices: married filing jointly, or married filing separately.

Either way, you'll be affected by the so-called marriage penalty, which leaves many married couples owing more taxes together than they would if they were single.

Seidel says that the 2001 tax law chips away at the impact of that penalty. But it doesn't take effect until later years. President Bush is pushing to make those changes fully effective this year.

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