Deductible Vehicle Donations: Form 1098-C
This post was updated in April 2018
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 February 28th, 2018 for 2017 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 pay 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 1098-C online with ease. Our online database has the 2017 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!