Tuesday, March 22, 2016

Boat Donation: Should I Itemize My Tax Deductions

Boat Donation: Should I Itemize My Tax Deductions

If you have made a large donation like a boat donation to a charity during a given tax year, you should certainly itemize your deductions in order to realize the value of your contribution.  There are, however, certain categories of individuals who are limited in how much they can take as a deduction on Federal Income Tax.

Boat Donation and the Standard Deduction

 Almost everyone who files taxes is entitled to take a standard personal deduction.  The standard deduction varies, depending upon the year and the personal situation of the tax filer.  There are also certain categories of people who cannot utilize the standard deduction.  These individuals will definitely be able to write off a boat donation .  Here are some categories people may fall in to prevent them from taking the standard deduction:

  • Someone who is married and filing taxes separately and whose spouse itemizes deductions cannot take a standard deduction.
  • If an individual files a tax return for a period of less than 12 months because of a change in her accounting period he or she must itemize deductions.
  • Those who are nonresident aliens or dual status aliens for the tax year are not entitled to the standard deduction.

Who Should Itemize?
There are also a number of categories of individuals who will definitely benefit by itemizing deductions because of their personal circumstances.  These people should have no trouble writing off boat donations.  These categories include:

  • Those who had a large, uninsured medical or dental expense should itemize deductions.
  • Individuals who paid interest on a mortgage or taxes on a home definitely benefit from the ability to itemize.
  • People who run their own businesses often have many expenses they can deduct.  Sometimes it is also the case that people working for employers incur similar unreimbursed expenses.  These are also deductible.
  • Uninsured casualty of theft losses are tax deductible under the right circumstances.  A qualified tax preparer can help to determine if the losses qualify.
  • Individuals who made large charitable contributions, like the donation of a boat mentioned earlier, benefit from itemizing deductions for their Federal Income Tax returns.
For more information about itemizing your tax deductions after boat donation, visit http://www.rawhide.org/donations/boat-donation-wisconsin/.

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