How To Earn A Donate Car Tax Deduction Madison

Many people in Madison, Wisconsin, are now aware that they can claim a tax deduction when they donate a car to charity. Furthermore, more people are now aware that one way to get an old car out of their hands, aside from the obvious method of selling it, is to donate it to a charitable organization. The reason is that the donation procedure is easier and is stress-free compared to the process of selling it. Nevertheless, there are a number of things to take into account before you go out and make car donations Madison.

Choosing the Charity to Donate To

To ensure that they will be able to claim a donate car tax deduction Madison residents need to make sure that the charitable organization is 501(c)3 registered. This ensures that it is a legit nonprofit organization and that it does not have any motives for lobbying government.

Next, don't forget to check the efficiency of the charity. A minimum of 80 percent efficiency is advisable, which means that 80 percent of the amount raised from the donation will be used directly for funding the services provided by the charity. The remaining 20 percent will be used for overhead expenses, such as salaries, marketing, maintenance, and more.

And finally, make sure that the charity has a good reputation. You can check this through the Better Business Bureau (BBB) and that it has a good rating with the BBB.

How to Claim a Donate Car Tax Deduction Madison

Let us now consider the donation process. Just like we have noted above, the process is simple and easy. You simply contact the charitable organization. Oftentimes, they have an online form where you can enter the details of your car. Shortly after, the charity will contact you to arrange for the pick up of the car and you can indicate the date and time that would be convenient for you. Around 30 days after the pickup, the charity sends you a tax receipt. On this receipt, the value that you can claim as a deduction from your taxable income will be indicated. Fill out the proper forms when you file your tax return and that's it!