PHague wrote:
What are the tax implications of donating an aircraft to the Commemorative Air Force?
Peter
Donating an aircraft to any organization goes like this in a nutshell.
Make contact with the organization and let them know that you are interested in donating your aircraft.
If you believe the aircraft to be valued over $5,000, then it will have to be professionally appraised.
Once it is appraised, the organization can then write you a tax deduction form for the assessed value of the aircraft.
However, unless you make a very large amount of money, the tax credit you will receive from donating it may not be of a big benefit to you and you will likely lose more than just selling it at a loss.
In fact, I know of a couple of people who have/had aircraft they wanted to donate but after talking to their tax advisor decided against it as they did not make enough money to fully benefit from donating the aircraft. The one guy ended up selling the plane and the other is holding them until they sell or he is going to scrap them.
If you do not want the tax credit, then it is a lot simpler to do. Essentially, it is just signing the title over and the new owners will have to register it and everything else associated with getting a new aircraft.
As I said that it is it in a nutshell.
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