One of the greatest things about making a boat donation to a charity in Wisconsin is that you can deduct the value of the proceeds from your taxable income. However, as with all things about taxes, there are some rules and regulations that you have to adhere to. Donating a boat to get a tax deduction isn't overly complicated, thankfully, you just have to know what to do. Below are some information about the process of getting a boat donation tax deduction.
Donating a Boat Tax Deduction Wisconsin Residents Can Claim
When planning to donate boat for tax deduction Wisconsin residents need to know that the first and most important thing to do is to ensure that the charity chosen is 501(c)3 registered. Only if a charity holds such a registration, like Rawhide does, will you be allowed to claim a deduction.
Make Sure to Get a Tax Receipt
The second element is that you can only claim a tax deduction if you can prove the expense. What this means is that when donating boats for tax deduction Wisconsin residents must make sure that the charity provides them with a tax receipt after they have sold the boat. This tax receipt will show the value of the donation.
The Value of the Tax Deduction
And that brings us to the third and final element. Different charities do different things with donations. A charity like rawhide.org, for instance, will usually sell the boat at auction. This means that the value of the boat is not the fair market value, but rather actual value. It is the actual value, shown on your tax receipt, that you can deduct from your taxes. The exception is if that value is below $500, in which case you can deduct the fair market value.
To recap, when you donate boat for tax deduction, the charity has to be appropriately registered and provide you with a tax receipt that shows the actual value of the sale. Last but not least, when donating boats for tax deduction Wisconsin donors have to make sure that they itemize they tax return at the end of the year. The deduction will not be done automatically, in other words, but it is one that you need to request.