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 ...