Contributing Your Aircraft
Donors who contribute vehicles, such as aircraft, support charities while often benefiting from a federal income tax deduction. The process of donating aircraft is a little bit more complex than giving donations of cash, but the following look into the steps can help simplify the process.
You should ALWAYS consult your tax adviser!
Giving Center does not offer tax advice or counsel. It is always best to speak with your accountant, attorney, or tax adviser to discuss your situation and determine the best way to make a significant contribution such as an aircraft donation. This is an overview of the steps that will apply to the donation of your aircraft:
- IRS regulations state that in to be able to deduct a charitable contribution for a donated aircraft above $250 you must receive from the donee organization a letter or receipt acknowledging your donation. Giving Center will give you a letter of acknowledgment that meets the IRS requirements.
- When you donate aircraft valued over $500, Giving Center will provide you with a contemporaneously written letter of acknowledgment and a copy of IRS Form 1098-C. The amount of your charitable deduction may depend on what Giving Center does with the donated aircraft.
- If your aircraft is valued over $5,000, in addition to the items listed above, you will need to get a written appraisal of the amount of your tax deduction. You as the donor, the appraiser (if applicable), and Giving Center must each complete a part of IRS Form 8283.
Tax Deduction Amount
If you are claiming that the value of your donated aircraft is more than $500, the amount of your tax deduction will depend upon what the Giving Center does with the aircraft.
If the Giving Center sells the aircraft your deduction will be the gross proceeds received from the sale of the aircraft.
If the aircraft you wish to donate has been used for business purposes please consult your business tax advisor about the deductible amount.
IRS Form 8283
Donors must also file IRS Form 8283, Noncash Charitable Contributions, to report information regarding noncash charitable contributions if deductions for accumulated noncash gifts during the year exceed $500. If donated items exceed $5,000 in value, the Section B of Form 8283 must also be completed, get a written appraisal of the donated property (this is only if the deduction is not limited to the gross proceeds from the sale of the property by the charity), and have the appraiser (if necessary) and an authorized official of the charity complete and sign portions of the form.
If YOU Sell the Aircraft
If YOU sell the aircraft and simply contribute the proceeds as a cash gift, then your donation will be filed the same as any cash contribution. You will be given a written receipt showing the amount contributed.
PLEASE consult your tax advisor before making that decision.
Giving Center accepts most types of aircraft donations:
