Form 1098-C is a special form used by individuals who donate a motor vehicle, boat, or airplane that is worth more than $500 to an organization of some kind or when the vehicle meets certain qualifications to sell it to someone in need at below the market value. When this form has the required information, the individual who donated the vehicle may be eligible to write off the item from their taxes. The type of information required will depend on the type of vehicle.
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A Form 1098-C is used by the Internal Revenue Service for tax filing purposes. It is also known as a Contribution of Motor Vehicles, Boats, and Airplanes form. It will be used for any contribution related to these vehicles that is worth more than $500. Only qualified vehicles will count towards this form; any vehicles held primarily for sale to customers does not qualify.
This form will require various information about the car and the contribution. The date the contribution is made and/or the date of the car’s sale will be needed. For the car, you will need to list how many miles are on the odometer, the vehicle identification number, and the vehicle’s monetary value. If the car has been involved in a sale, the details of the sale must be listed.
The more information you include, the more likely it is you will get a tax break. Be sure to list the conditions of the sale to ensure it was appropriate for this form. Remember that it must be a sale to a needy individual below market value or involved in an arms-length sale to qualify.
This form is commonly used when you donate a vehicle to charity and the vehicle’s fair market value is more than $500.
A Form 1098-C contains sections for:
To complete a 1098-C, you need to provide the following information:
If you received any goods or services from the charity in exchange for your vehicle, you may need to reduce your deduction by the value assigned to those goods and services.
