Information about tax deductions and your charitable contribution.
You have to consider the value of the aircraft and all of its equipment.
The best place to get this information is by using the NADA Pricing Guide.
You can find this free guide at http://www.nadaguides.com/.
From that page you would choose the category AIRPLANES. Follow the guide
and find the price.
The Fair Market Value of your aircraft cannot be determined by a charity;
the IRS considers that to be a "conflict of interest". A charity's
tax receipt is, however, proof that you made the donation. The aircraft's
fair market value has to be determined by an independent certified appraiser
unless its value is less than $5000.
Any noncash charitable donation that has a value over $5000 has to be
independently and professionally appraised. The charity will arrange and
pay for the appraisal of your donated aircraft by a qualified independent
and certified professional appraiser.
For more information about determining the "fair market value"
of an aircraft and other IRS information and publications please click
here.
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All such donations donated to charitable organizations granted tax exemptions
under section 501 (c) (3) of the Internal Revenue Code are tax deductible.
WARNING: Not all charitable organizations
have been granted tax exemption under section 501 (c) (3) of the Internal
Revenue Code. We would advise you to read what is stated by any charity
donation site.
The IRS has granted tax exemption under section 501 (c) (3) of the Internal
Revenue Code to all of the charities with which we work.
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Itemizing Taxes - Do I need to itemize deductions?
If your primary motivation in donating an aircraft or other vehicle is
to gain a tax deduction you will need to itemize your deductions on your
Federal and State Tax Returns.
If currently you are not itemizing your deductions on a Long Form, your
accountant would be able to tell you if making an aircraft donation would
justify switching to itemizing your yearly deductions and using the longer
form. Typically an aircraft donation would justify itemizing expenses
due to the usual higher value of aircraft, which typically would be greater
than the standard deduction given when not itemizing.
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Does the new tax law affect how much I can deduct on my 2005 income tax return?
Thanks to the new tax law, the IRS has taken the guesswork out of how to determine the value of your vehicle.
Beginning January 1, 2005 you may deduct the full price we receive for the sale of your vehicle. This greatly simplifies the process for you in several ways:
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If your vehicle sells for more than $500 you’ll know exactly the amount you may deduct, eliminating guesswork. Thus you no longer have to research and come up with an estimate of the fair market value of the vehicle.
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This also eliminates the risk of you getting into trouble by overstating the value of your deduction on your tax return.
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This saves you both time and risk.
Here is how it works:
Under the new law, if your vehicle sells for $500.00 or more at the dealer auction house, we are now required to send you a receipt containing the following information:
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Your name and the VIN of your vehicle;
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The fact the donation was "arms length", i.e. that we are not related to you in any way, family or business-wise;
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The selling price of your vehicle becomes its fair market value.
This makes the entire procedure very simple for you. And eliminates any risk from the IRS.
If you car sells for less than $500.00 at auction, you may deduct what you consider as the fair market value of your vehicle, as long as that figure is under $500.00.
In this case, we will be sending you a less detailed tax receipt that simply acknowledges your donation (with your name, date of your donation, and the description of your vehicle).
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What proof do I need for my deduction?
You will need a tax receipt with a 501 (c) (3)'s name and Federal Tax
ID number on it verifying the date, the year, make and model of your aircraft
donation, its equipment, etc.
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| Fair Market
Value | Tax
Deductible | Itemizing
Taxes | Tax
Benefit | Donation
Proof | 
