Donating a vehicle is a great way to help local families and receive a tax deduction. Specifically in Milwaukee Wisconsin there are a variety of local car donation facilities that provide tax deduction receipts along with helping local families and children in need.
A local charity just released a guide that helps car donation donors figure out what they are allowed to claim and which charities can provide the maximum tax donation.
According to the IRS, there are two options to consider to receive a tax deduction on a vehicle donation. The donor can either receive an automatic $500 deduction without having to wait for the resale value or they have to wait for their car to sell if they believe their car is worth more than $500.
Once a car is donated to a local charity it is then sent to an inspection facility and potentially small repairs are made to ensure the donor is receiving the maximum sale value to deduct. It is important when considering a car donation to work with a local charity that is educated in how taxes will be affected by the car donation.
Making a car donation is a quick and easy process. For most car donation centers the donor simply fills out a form online or has the option to call a donation expert to start the process. Once the donor has inquired about donating their vehicle, a donation center will contact them and setup a free pickup within 24 hours. Once processed the donor will receive a tax receipt. The process is that simple.
When people are considering to go down the car donation route it is important to research which car donation location is trustworthy. The best car donation charities will use the vehicle in its operations or that will give it away to people in need. By not choosing a charity that uses the vehicle properly, it could result in the donor not getting the full market value affecting their tax deduction.
In Milwaukee people would be surprised to learn that 83% of car donation proceeds directly fund treatment programs for at risk youth. Donors will also (on average) receive a 48% higher tax deduction amount than they would from working with national organizations instead of local.
One local charity creates family counseling centers for local families in need and helps fund the program with local car donations. Their licensed therapists offer their knowledge and experience in dealing with issues like depression, anxiety, loss, grief, bipolar disorder, abuse, anger, marital conflict, post-traumatic stress disorder (PTSD), child and adolescent issues, ADHD, suicide prevention and phobias, but this list isn’t exhaustive by any means. According to a spokesperson of the local car donation charity, “All of our programs are supported by vehicle donations. Even though those vehicle donations are monetarily important, teachable moments with our youth are the key elements to our vehicle program. It’s those hands-on experiences that no other vehicle donation program has and it’s what makes us unique.”
In addition to car and other vehicle donations, most car donation programs also accept motorcycles, trucks, boats, RV’s, and more. Regarding the safety of donor information, most car donation programs promise that donor information will be kept extremely confidential. That is why working with the right car donation organization is key when choosing where to donate a vehicle.