The Process Of Aircraft Donation


Donating Aircraft to a Charity

First Things First:

If you donate aircraft to AircraftDonation.org, or any IRS approved charitable organization, its Fair Market Value must be detaermined. An acceptable measure of the of a fair market value of an aircraft is an amount not in excess of the price listed in a used aircraft pricing guide for a private party sale, not the dealer retail value. However, the fair market value may be less than that amount if the aircraft has issues, damages, high airframe hours or any type of exstensive wear. The Fair Market Value of a donated aircraft is determined by many factors such as the price listed in a used aircraft pricing guide; that is only if the guide lists a sales price for an aircraft that is the same make/manufacturer, model and year, that is sold in the same geographic area, in the same condition, that is also with the same or similar engines, options, systems or accessories, and total hours and with the same or similar warranties as the donated aircraft. Your IRS tax deduction for when you donate aircraft generally is limited to the proceeds raised from its sale by the qualified charitable organization. This applies if the claimed value of the donated aircraft is more than $500. In most cases, you are able deduct the aircraft’s fair market value. An aircraft appraisal can therefore be used by the donor making the donation to charity and utilized as a selling tool for the charitable organization. Remember, the aircraft appraisal must be made no more than 60 days before you donate aircraft.

Determining Fair Market Value:

When figuring out how much you can deduct for an airplane donation, you must first determine its Fair Market Value as of the date of the contribution. Fair Market Value is the price that aircraft would sell for on market. In essence, is the price that would be agreed on between a willing buyer and a willing seller.

The Amount You May Deduct:

One of the main factors affecting the size of your tax deduction is the price your aircraft sells for. IRS publication 561 states that your tax deduction is limited to the gross proceeds from the sale by the charitable organization. When you donate used plane to AircraftDonation.org you never have to worry about guessing the fair market value of your aircraft!
AircraftDonation.org is a part of a nonprofit charity organization that has been granted tax exemption per section 501(c)(3) of the Internal Revenue Code.
For more information on aircraft donations, feel free to browse my other blog posts:

The Benefits Of Donating Seaplane To Charity


Have An Older Business Jet You Can't Sell? Donate Jet To Charity



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