This post was updated in April 2018
1098-C Form: Contribution of Motor Vehicles, Boats, and Airplanes
So, you’ve decided to make a charity contribution and donate your vehicle. You’ve spent a lot of time searching for the right organization and finally you’ve made your choice. Congratulations! However, this is just half the battle. The IRS has adopted a specific vehicle donation policy that requires filing a set of corresponding documents. In 2018, the procedure hasn’t changed. As in previous years, it still consists in filling out some forms. In this article we`ll tell you about the most important form, the 1098-C, which is necessary for successful vehicle donation.
Who needs a 1098-C form?
When you decided to donate a vehicle, 1098-C form is the document to start the process with. Any donee organization that will accept the specific vehicle for its own use on a free-of-charge basis has to complete this form.
What is the 1098-C form for?
In fact, the 1098-C form is a description of a vehicle, which will be granted by the donor to a recipient on a non-payment basis. The important fact is that the value of the gifted vehicle must not be less than 500 USD. In this case, 1098-C proves the donor’s eligibility for a tax deduction.
What kinds of vehicles can you donate then? According to the vehicle donation policy, you may contribute applicable vehicles including a motor vehicle, which may be used on public streets, highways, and roads. Airplanes and motor boats are also applicable.
Keep in mind that such items like property for sale or the inventory of a car dealer cannot be qualified as vehicle. So, the 1098-C will not be used for filing in these instances.
Also, this form must not be filed if the value of vehicle is less than 500$ — for this, you can use the 170(f)(8) only.
Is the 1098-C form accompanied by other forms?
Generally, the 1098-C form can be accompanied by the 170(f)(8) application. Also 1098-C is a necessary attachment to form 1096.
When is the 1098-C form due?
As a donor you must be provided a copy of the 1098-C within 30 days after the vehicle has been donated. This means that a charity organization must fill out the 1098-C form and send it to the IRS within a 30-day period. Also, the day of contribution must be indicated in the document.
How do I fill out the 1098-C Form?
In fact, everything is quite simple. To fill out this form, you must first complete the 1096 form. After that you have to add the following information to the 1098-C form:
- Donee’s personal information
- Donor’s personal information
- Specifications of contribution
- Value of property granted by donor
- Checkbox, where donee guarantees that the value of the property is not less than $500
Pay close attention to every piece of information you provide in the form. Any mistake made by the donee or donor may lead to different kinds of penalties.
Where do I send the 1098-C Form?
The final step in completing the 1098-C is sending it to the IRS. To be precise, 1098-C form must be attached to the 1096 form and sent to the Department of the Treasury – Internal Revenue Service.
To make the process even easier, you may look through the updated 1098-C form using PDFfiller. There you will also find lots of useful tips and advice on the filing process.
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