G

geep

I'm New Here
Has anyone had any experience with giving a plane to a charitable organiztion and taking the value of the gift as a tax deduction? If so I would be interested in the pro's & con's. I am thinking of selling (giving) my 1993 RV-6, as I have found that the high cost of keeping it vs my actual flying hours makes it hard to justify. The plane flys well and is in decent shape but I am one of those types that hates to sell my own stuff and the endless negotiations that go with it, not to mention the potential liability. So I thought that a gift might be a quick way to handle it and essentially end up with the same net result. Anything wrong woth my thinking?
 
geep said:
The plane flys well and is in decent shape but I am one of those types that hates to sell my own stuff and the endless negotiations that go with it, not to mention the potential liability. So I thought that a gift might be a quick way to handle it and essentially end up with the same net result. Anything wrong woth my thinking?
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How would this affect your "potential liability"?
 
donations

liability issues will not change.

several years back i donated a car and received a very generous tax benefit. in december '09 found my teenager's $4K car needed a $4K transmission and approached the tax accountant with the same idea and was informed the tax rules have changed considerably. i assume an airplane would fall under the same taxation rules as an automobile.

the following article from edmonds discusses the tax implications:

http://www.edmunds.com/advice/selling/articles/48930/article.html

as the article states. you might be best served to sell the plane (or hire someone for a small %) and then give some portion of the proceeds to your favorite charity. both you and the charity likely come out far ahead. few charities are set up to sell an airplane. fewer charities are adept at adequately marketing a homebuilt. likely far fewer charities prepared to properly market and transfer a homebuilt are already on your list of favorite charities.
 
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I've helped a local non-profit receive several aircraft donations. In some instances, the aircraft are donated for use, and in others, the non-profit sells the aircraft and keeps the proceeds. There are a few things that must be done correctly for the donor to get a reasonable donation receipt.

If you are interested in proceeding, pm or email me off list.

Tim
tcone1@comcast (dot) net
 
The A&P program at the college I work at has accepted several aircraft donations. I am not sure of whether such a donation would qualify for a tax deduction, but in any case aren't we only talking about a deduction to your taxable income, not your tax? If this is the case, we're only talking about 1/3 of the value going back to the donor.

Regarding liability, my school has agreed that the donated aircraft will never be registered.
 
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Geep,

I'd give Pat Panzera from Contact Magazine a call. He's a really nice guy and would be very happy to talk to you about possibly donating your plane to his 501(c)(3) charity set up specifically for accepting experimental aircraft/aircraft parts donations only.

From his site:

DONATE YOUR PLANE, PARTS OR PLANS: The first ever ?for aviators by aviators? charity needs your support. Receive tax benefits for a charitable contribution, donating your plane or any of your surplus parts and/or materials. See page 22 of CONTACT! issue #72 or visit ContactMagazine.com for information on our 501 (c)(3) charity. CONTACT! Magazine (559) 584-3306

Contact Magazine
PO Box 1382
Hanford CA 93232-1382
United States of America
(559) 584-3306
(559) 585-0930 Fax
[email protected]
Editor: Patrick Panzera

George
 
I have made several promotional videos for an organization that actually uses such aircraft. I know they have a donated Glastar and Husky that are put to good use. They are in Missouri and train missionary pilots, plus (as possible) provide aircraft to those who need them in the field. VERY reputable and ran by the best pilot I have ever known. PM me if you are interested in contact info.

Bob Kelly
 
videobobk said:
I have made several promotional videos for an organization that actually uses such aircraft. I know they have a donated Glastar and Husky that are put to good use. They are in Missouri and train missionary pilots, plus (as possible) provide aircraft to those who need them in the field. VERY reputable and ran by the best pilot I have ever known. PM me if you are interested in contact info.

Bob Kelly
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thanks for speaking up Bob, it makes me hurt somewhere to hear about an airplane getting dismantled due to a fear of liability. It seems to be a constant worry, yet there has never been a successful suit. I don't know how many people have even tried, but i do know it is better to keep flying planes flying!
 
Your local Community College with...

...an A&P course might be interested - lots of repairs/maintenance they could do on it as a non-flying donation for reduced liability.

I have donated several used parts to our local one, and they were pleased to get them. They were an official tax-exempt charity and gave me the proper tax paperwork.
 
N395V said:
Call these people.

They probably have no use for an RV but will value it appropriately and are often in a position to sell planes they do not need.

http://www.wings-of-hope.org/
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I hanger next to the chief pilot at Wings of Hope. He seems to fly somewhere every week to pick up a plane donated to them. They recieve all types of plane donations. Stuff like T-28, tri-pacer, and cubs they sell, C-170, Husky's, and other STO aircraft they may send to South America to use in missionary work, and C-206 and light twins they will keep to fly patients around the US for medical care.

Excellent Organization.
 
Any 501c(3)can take that airplane, unless it violates that organization bylaws, and make it tax deductible to the donor. I should know how, as VP of our EAA chapter that got approval for 501c(3) in order to be able to accept larger donations but I'd have to talk with the President or Treasurer.
 
Perhaps the charity of your choice, if they are going to sell the plane, would let you advise them on the ways that a homebuilt could be marketed.

Of course, if you take that to its limit, you'd sell the plane yourself and share the money with them as someone already suggested and which you indicated that you'd rather not do.

Still, if you care for the charity enough to give them the plane, perhaps they'd recognize that and accept your expertise as an adviser. You might be able to work out a relationship that is easy on yourself but is still a good, favorable arrangement for the transfer. It's certainly worth discussing the various concerns with them.
 
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