sale of the church van

The church sold our van. I was told by several members I can not list the proceeds as revenue in the general ledger. Please let me know any suggestions, I know the sale and money need to be recorded somewhere.

Thank you

Comments for sale of the church van

Click here to add your own comments

Aug 15, 2013

vehicle
by: Sandi

http://www.irs.gov/pub/irs-pdf/p4302.pdf pg5. Charity Sells the Vehicle – If the charity sells the vehicle for more than $500, in addition to the information required for all acknowledgments, the contemporaneous written acknowledgment must include:
■ a statement certifying that the vehicle was sold in an arm’s length transaction between unrelated parties,
■ the date the vehicle was sold,
■ the gross proceeds received from the sale, and
■ a statement that the donor’s deduction may not exceed the gross proceeds from the sale.However, if the gross proceeds from the sale are $500 or less, the charity should not provide a written acknowledgment based on these rules. Instead see Written Acknowledgment for Vehicle Contribution Deduction of $500 or Less.
&
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/FAQs-Regarding-Reporting-Cash-Payments-of-Over-$10,000-(Form-8300) #10. If a nonprofit organization is selling a tangible asset like furniture or vehicles and receives cash for it that exceeds $10,000, is there a Form 8300 filing requirement?
Exempt organizations do not need to report the receipt of cash donations over $10,000 because an exempt organization is not, in carrying out its exempt function, considered in the definition of a trade or business under IRC section 162. To fall under this category, an organization must have obtained section 501(c)(3) or other tax-exempt status under the Internal Revenue Code; having in its possession a determination letter or an approved application for tax-exempt status from the Internal Revenue Service. The proceeds of a sale must be exempt from tax as part of the carrying on of the exempt organization's tax-exempt activities; in which case, Form 8300 reporting is inapplicable. Form 8300 is required for cash received in the conduct of unrelated trade or business activity of the organization.

hope this helps, Prayers

Aug 15, 2013

thanks
by: Anonymous

I was thinking more from the budget side. I recorded the money as designated for purchase of a new van, and the sale of a fixed asset. I was told that is incorrect. The van was sold by the trustee of the church, but the links you provided are good points.

Thanks

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping and/or payroll?

Contact Me!

Recommended Resource!

Online classes/courses on how to use QuickBooks Desktop and QB Online for a church!

Click here for more details!

Use coupon code "FCA" for 10% discount!