Wednesday, February 10, 2016

Donate Car: Know the Tax Deduction Rules

Donate Car to Charity

It is pretty easy to donate car to any number of organizations if your only goal is to get rid of an old heap of junk that is cluttering up your beautiful property.  Just do an internet search, call up one of the car donation charities and the organization will most likely haul it away.  If this is your situation, you may do just as well by calling a scrap metal dealer who will also haul away your wreck, and maybe give you a few dollars for it on the spot.  But what if you want to donate car Milwaukee in order to support those in your local community? What if you also itemize your tax deductions and hope to realize some value as a deduction when you donate car?
Donate Car: Know the Tax Deduction Rules

Milwaukee Donate Car

Once you choose from the Milwaukee car donation charities, you will want to learn about how to make sure you receive your tax deduction.  Here are a few of the basics:
  • Make sure that you are donating to an organization that is approved by the Internal Revenue Services as "exempt status" or a 501(c)(3) entity.  Many organizations state this in their mission statement.  If you are not sure, ask before donating.
  • You may also receive a deduction for donating to a religious organization.  Religious organizations are not required to register for any special status with the Internal Revenue Service.
  • The Internal Revenue Service also maintains an "exempt organizations site" and a toll free number that you can use to find or check the status of a charity.
  • There are no limits on what or how much you can donate to charity in a given year.  The IRS does, however, limit how much you can deduct from your federal income tax.  Your donations cannot exceed half of your gross income.  This is something to consider if you are making a lot of donations, donating something very valuable, or if you have been unemployed or otherwise had a very low income during the tax year for some reason.

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