Jump directly to the content

IRS Clarifies Rules for Donations of Vehicles to Charity

What church treasurers need to know.

Church treasurers should be familiar with new rules governing the donation of vehicles to charity. These rules assume that the claimed value of the donated vehicle exceeds $500. The rules are summarized in the following table. They apply to donations of cars, boats, and planes.

Donations of Vehicles to Charity

A recent IRS "news release" provides clarification on three issues:

(1) Date of sale. Questions have arisen as to whether the charity must sell a donated vehicle in 2005 in order for the donor who donated a vehicle in 2005 to receive a deduction for 2005. An IRS news release states that a charity does not need to sell the vehicle in 2005. A taxpayer can take a charitable contribution deduction only for the year the vehicle is transferred to the charity, even if the vehicle is not sold by the charity until a later year.

(2) Acknowledgment received after filing tax return. If a person who ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
  • February 1, 2006

Related ResourcesVisit Store

2020 Church & Clergy Tax Guide
2020 Church & Clergy Tax Guide
Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Talking to Your Congregation About Money
Talking to Your Congregation About Money
Helpful insights on talking about money and encouraging people to become generous givers.
Charitable Contributions Bulletin Inserts
Charitable Contributions Bulletin Inserts
Help your members give more by answering their charitable giving and tax law questions.
Church Fundraising Campaigns
Church Fundraising Campaigns
Discover tips on raising and borrowing money.