Donating a Pickup Truck and Receiving a Tax Credit

One farm couple from Stanley, North Dakota, had a fully depreciated Ford F350 truck that they wanted to replace. If they had sold the vehicle, they would have paid capital gains tax on the sale price. Instead, they donated the truck to the North Dakota Community Foundation. There was no tax deduction for the gift since it was fully depreciated. However, NDCF sold the truck for $30,000 and the couple received a 40% state tax credit for that donation - $12,000 off of their North Dakota income tax balance due. The credit could be carried forward for up to three years, providing tax relief for the couple in the future if they didn't need the full amount in that year.

The proceeds from the sale of the vehicle were placed in the Stanley Area Community Foundation fund at NDCF, which continues to grow with donations and gifts.

Donating vehicles and other agricultural equipment is a great way to support the causes you love, but requires due diligence. Talk to a professional at NDCF if you are considering this option – we can help you figure out the best way to accomplish your goals. Call us at 701-222-8349 and we'll connect you with an expert in your area.