Filling out your Federal Income Tax or going to see your tax accountant can be one of the most stressful things you do all year. One of the best ways to decrease your stress is to make sure you are able to keep as much of your hard earned income as possible instead of paying it to the government as income tax. While every tax paying citizen is entitled to a standard personal deduction at tax time, itemizing you deductions can add up to an even larger total deduction.
Car Donations Milwaukee
In Milwaukee, car donations are accepted by many local charities. These kinds of donations are just exactly what you would think. If you have an old car that you no longer use or want, you can donate it in exchange for a tax deduction that you can add to your other deductions on your itemized return. Older cars that will have a very low trade-in value at a dealership, as well as non-working cars, are typically happily accepted by car donation charities such as Rawhide.
In 2005, the Internal Revenue Service enacted specific guidelines to let you know exactly how much you can deduct when you donate a car to charity.
- If the charity sells your vehicle, you can claim the fair market value of your vehicle up to $500, or the amount that the vehicle sells for if it is less than the fair market value. The majority of charities that accept donated vehicles are able and willing to help you fill out your paperwork so that you can realize the maximum tax donation for your vehicle.
- If your donated vehicle is sold for more than $500, you can claim the exact amount for which the vehicle sells.
- Once your vehicle is sold, you will be mailed a notification that states the amount of the tax deduction you can take for your donated vehicle.
- If the charity will use your vehicle in their mission, for example by transporting children they serve to arts and culture or sporting activities, you can claim the full market value of the vehicle as your tax deduction.
While filing a tax deduction is great, there are many other benefits to donating a car as well. Visit www.rawhide.org to learn more.