Friday, August 26, 2016

Tax Benefits for Philanthropists: Donate Car

donate car

Of course there are many ways to make charitable donations if you are a philanthropic individual who wants to give something back to your community, or to a particular group or organization about which you feel strongly.  Many of these donations can benefit you at tax time.  If you really look at the tax code, you will be surprised at how many items are actually deductible when you donate to charity.  If you volunteer your time to a charitable organization, you may be able to deduct the cost of child care for the hours you donate.  Who would have thought?

Donate Car Milwaukee

It has become more and more well known that it is possible to donate car to charity Milwaukee.  Those wishing to donate car  may wish to have more information on the donate car tax deduction Milwaukee.  Here are some of the basics:

  • Make sure the organization to which you are donating the vehicle is a government certified not-for-profit agency.  This means that they have 501 (3)(c) status.  Some religious organizations may also be eligible to accept car donations without having formal not-for-profit status.  If you are unsure about an organization's status, ask for verification before donating.
  • Know that there are only a few circumstances under which you can claim the full market value of the vehicle as your tax deduction.  These include when the charity utilizes the vehicle in their actual mission, if the charity bears the cost of making significant material improvements to the vehicles beyond normal cleaning and cosmetic repairs, and when the charity sells the vehicle to a needy individual in need of transportation at significantly below the fair market value.
  • In order to take the car donation tax deduction, you will need to itemize your deductions; and, the total value of your itemized deductions will need to exceed the IRS standard deduction in order for you to benefit.

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