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

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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
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

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