What is Form 1098-C?
Form 1098 C, Contributions of Motor Vehicles, Boats, and Airplanes, is a form issued by the IRS for taxpayers that want to donate a vehicle that has a claim value of more than $500.
Vehicles that qualify under the filing of the IRS Form 1098-C are as follows:
- Motor vehicles that are primarily made for use on public roads, highways, and streets
In addition, vehicles that a donor regularly sells do not qualify for the filing of the 1098 C Form.
Much like all 1098 forms, the 1098-C Tax Form is a document that will allow you, as a taxpayer, to make deductions to your taxes. The 1098 C Tax Form, in particular, allows you to make deductions through donating vehicles for charitable pursuits.
The 1098-C Form must be filed by the organization or entity that will receive the donated vehicle. The donee must complete the 1098 C IRS form and send the appropriate copies to the donor either:
- 30 days after the date of sale,
- 30 days after the date of the contribution or;
- Before the tax return of the donor is due
For the donor, Copy B of Tax Form 1098-C must be attached to their income tax return to validate the tax deduction from the vehicle. If you electronically file your tax return, you can submit tax form 1098 C in two ways:
- You may attach Copy B of the IRS 1098 C Form to a copy of Form 8453, Individual Income Tax Transmittal, to be mailed to the IRS.
- You can also submit the IRS 1098 C Form as a PDF attachment to your electronically filed tax return.
How to fill out Form 1098-C?
Donors and donees who are required to fill out Form 1098-C can download and print a PDF version of it from the official IRS government website to fill out manually. You can also fill out the form electronically using PDFRun.
Form 1098-C has four copies for different purposes:
- Copy A will be submitted to the IRS for their review and approval.
- Copy B will be filled out for the Donor. This will be their copy that they can attach to their tax returns.
- Copy C will be for the Donor’s records of their transaction.
- Copy D will be for you to keep.
DONEE’S Name, street address, city or town, state or province, country, ZIP code or foreign postal code, and telephone no.
Input the complete and registered name of the Donee, if it is an organization, input the name of the organization.
In addition, input the complete mailing address of the donee, if the donee is located outside of the US indicate their country and follow the postal standard for that country.
1 Date of Contribution
Input the date you have received the motor vehicle, boat, or plane from the donor.
2a Odometer Mileage
Input the current number displayed on the vehicle’s speedometer. This is only applicable to motor vehicles. If you have received a boat or an airplane, leave this box blank.
For Calendar Year
Input what year you are filing this form.
Input the year the vehicle was manufactured.
Input the brand that manufactured the vehicle.
Input the model of the vehicle.
Input your taxpayer identification number.
Input the donor’s taxpayer identification number. If the donor has not provided a TIN, then you can check box 7 so that they will be prevented from using the charitable donation as a deduction in their taxes.
Vehicle Identification Number
Input the Vehicle Identification Number (VIN). The format of this number is different depending on the vehicle:
- For Motor Vehicles, it is 17 alphanumeric characters. To find it, refer to the vehicle’s owner manual.
- For boats, the hull identification is 12 alphanumeric characters found on the starboard transom.
- For airplanes, the aircraft identification number is 6 alphanumeric characters located at the tail of a U.S. aircraft.
Input the name of the individual or entity that has given you the vehicle.
Input the complete address of the donor including their street number and apartment number.
City or Town, state or province, country, and ZIP or foreign postal code.
Continue the complete address here, inputting the city, state, country, and postal code of the donor.
Check this box if the vehicle has been sold to another party without the influence or interference of another party. Otherwise, leave this box blank.
4b Date of sale
If you have checked box 4a, then input here the date of the sale of the vehicle. If you have not checked box 4a, leave this box blank.
4c Gross proceeds from the sale
If you have checked box 4a, input the complete sales price of the vehicle. If the vehicle is worth less than $500, skip this part.
If you can confirm that the vehicle will not be exchanged for property, money, or services before any material improvements and use of the vehicle is completed, check the box. Otherwise, leave this part blank.
If you can confirm that the vehicle is to be transferred to the needy for a value significantly lower than its fair market price, check the box. Otherwise, leave this part blank.
This section is to certify what the charity intends to do with the donated vehicle. Input a concise description of material improvements and uses that are planned for the vehicle to further the goals of the charity organization.
If you have provides any goods or services to the donor in exchange for the donated vehicle, check yes. Otherwise, check no.
If you have checked yes on box 6b, indicate the total value of the goods and services you have provided in exchange for the donated vehicle.
If the value of the vehicle is less than $500 or if the donor did not provide a TIN, check this box. Otherwise, leave it blank.
If you check this box, do not submit Copy A of this form to the IRS, and do not fill out Copy B for the donor.