Would you like
to have real information about tax deductions and your charitable contribution?
Please read this page.
Determining the fair market value of a motorcycle donation is easy.
You have to consider the value of the motorcycle. And if you have a trailer
for it, then separately consider the value of the trailer.
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 Motorcycles. Follow the
guide and find the price. Keep in mind that the value will almost never
be high retail as that is what a dealer would charge after fixing it up
and selling it with a warranty. That also covers dealer's costs, which
an individual seller does not have.
To find out the fair market value for a trailer you would choose Boats
as that section includes trailers, whereas the Motorcycles section does
not.
You can also find out information about the value of used motorcycles
and trailers by speaking with motorcycle dealers and their representatives.
The Fair Market Value of your motorcycle 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 motorcycle's
fair market value has to be determined by you, unless the motorcycle (and
trailer) has a value of $5000.00 or more, then a certified motorcycle
appraiser must make that determination.
Information from the IRS website.
For information about determining the "fair market value" of
a vehicle directly from the IRS website 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 our charity.
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Itemizing Taxes - Do I need to itemize deductions?
If your primary motivation in donating a motorcycle 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 a motorcycle donation would
justify switching to itemizing your yearly deductions and using the longer
form.
We suggest you visit our IRS
Information page and check out all of the links to the IRS website
to get a complete understanding of the IRS view of a noncash charitable
contribution.
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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 motorcycle
donation and a separate receipt for the trailer donation.
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| Fair Market
Value | Tax
Deductible | Itemizing
Taxes | Tax
Benefit | Donation
Proof | 
