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

2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.
Charitable Contributions Tax Reminder
Charitable Contributions Tax Reminder
Encourage benevolence by informing your donors about tax deductions they could claim by properly reporting charitable contributions.
2020 Charitable Contribution Bundle
2020 Charitable Contribution Bundle
Implement processes designed to stimulate and nurture benevolence in your church.
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.