Factors To Consider To Claim A Donate Car Tax Deduction Madison

Many people in Madison, Wisconsin, already know that when they donate their car to charity, they can claim a tax deduction when they file their tax return for that year. This article examines the various factors to consider when claiming a donate car tax deduction Madison.

What to Check to Ensure You Can Claim a Donate Car Tax Deduction Madison

The first thing you need to check is whether or not the charitable organization is 501(c)3 registered. This is essential because if the charity does not have this registration, you will not be able to claim the tax deduction. You can check that it has such a registration with the IRS.

Other Things to Consider Before Making the Donation

Although these will not affect the tax deduction that you can claim, there are other factors to consider. For instance, it is advisable to find a charity that has an efficiency of at least 80 percent. What this means is that when they sell your car, at least 80 percent of the money they sold it for will be used for funding their charitable works. The remaining 20 percent will be spent for other expenses, such as advertising and the salaries of staff and managers.

The Donation Process

The actual process for donating the car  to car donations Madison charities is actually quite simple. You simply contact the charity by phone of through their website. After that, they will contact you to schedule the time and date for the pick up of the car that is convenient for you. Within 30 days after the pickup, the tax receipt will usually arrive.

After picking up up the car, the charity can do one of several things with the car. Whatever it is doesn’t matter for the donor because it is the value of the car at the time that it has been donated that will be considered when filing for the tax deduction. Even if the charitable organization made some improvements to the car before selling it, it would still be the estimated value of the car when it was picked up by the charity that will be used in the tax form. This is only one of the many reasons why car donation Madison is such an important thing to consider.