Deductible Vehicle Donations: Form 1098-C
Beyond regular monetary donations, many charities will accept donations in the form of vehicles. In most circumstances, the IRS requires documentation of these vehicle donations with IRS Form 1098-C, “Contributions of Motor Vehicles, Boats and Airplanes”.
Qualifying charitable organizations should be sure to fill out this form and send the relevant copies out by their respective due dates. Copy A, which goes to the IRS, is due by March 2nd, 2015 for 2014 donations. Copy B and C are due to the donor within 30 days of the contribution or re-sale of the vehicle. Important boxes on the form include 4A and 4C if the vehicle was sold, and 5A if the vehicle was improved in any way to raise its value.
Donors should play close attention to the 1098-C they receive from the organization. The deductible amount will be one of two things: the price the organization sold the vehicle for (marked in Box 4C), or the fair market value of the vehicle if the organization made improvements on it or did not sell it (Box 5A), or gave it to an individual at below market value (Box 5B).
Charitable organizations can use PDFfiller to fill out the 1098C online with ease. Our online database has both the 2014 Form 1098-C and the 2015 Form 1098-C, ready to be filled out. PDFfiller makes completing tax forms straightforward and efficient, so you can focus on your business or charitable work!