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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 ...

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Posted:
  • February 1, 2006

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