On the surface, it seems like a relatively simple thing to donate a car to your favorite charity. Just call the charity to see if they accept old vehicles then turn the car over to them. However, there are cases where it can be much more involved than a simple phone call. If you're planning to get the most out of the donation where both you and the charity can benefit, then it's time to look a little closer at the process, particularly in choosing the charity for a car donation.
For Tax Deduction
In the past, it was a simple process. The IRS allowed everyone who made a Milwaukee car donation to declare the fair market value on their income tax returns. But today, the IRS has tightened the rules and this type of deduction is only allowed under special circumstances.
Deductions Must Be Itemized
If you plan to use the fair market value as a deduction on your income taxes, the IRS will require you to itemize your deductions when you file. That means that you will not be able to file a 1040EZ return but will have to use the long form when claiming your donation as a deduction. This is required even if the car donation Milwaukee is your only deduction.
Must Use a Qualifying Charity
Your car donation charity Milwaukee organization also must meet certain qualifications. This means that your chosen organization must be approved by the IRS under an exempt status or is a 501 (c)(3) organization. So, you may think that your child's soccer club may be worthy of your old car but the IRS may not agree. The only exception to this rule is in the case of religious organizations. They are considered as qualifying charities although they are not listed as a 501 (c)(3) organizations.
If you have plans to donate your vehicle to a Milwaukee car donation charity, there are many factors that need to be considered. It pays to make sure of all the details before you make the donation. That way both you and the organization can benefit from the donation. If for some reason you're not sure if your donation or the charity qualifies, it pays to contact the IRS directly to find out before you give your car.