What is a Form 1098-C
Form 1098-C - Contributions of Motor Vehicles, Boats, and Airplanes is a form that’s filed with the IRS by a charitable organization whenever they receive a donation of a qualified vehicle with a claimed value of more than $500. For tax purposes, a qualified vehicle is considered any motor vehicle manufactured primarily for use on public streets, roads, and highways; a boat; or an airplane.
When a qualified charity receives a donation of a qualified vehicle, and the donor is claiming a value of more than $500, the charity must notify the IRS by filing Form 1098-C. The charity is required to provide the taxpayer with a written acknowledgment of the donation. This is usually done by giving the donor a copy of the Form 1098-C.
A taxpayer's itemized charitable deduction is generally limited to the actual sales prices of the vehicle when sold by the charity. There are situations when the taxpayer can deduct the vehicle's fair market value such as when the charity makes significant use of the vehicle, or otherwise donates or sells the vehicle to a needy individual at a significantly below-market price. See Publication 526 - Charitable Contributions for additional information on whether the taxpayer's deduction is limited to the actual sales price of the vehicle.
Where do I enter my Form 1098-C?
To enter a Charitable Contribution of a Motor Vehicle, Boat or Airplane that is reported on Form 1098-C into the program, choose the following path:
- Federal Section
- Itemized Deductions
- Gifts to Charity
- Non-Cash Donations (More than $500)
- Form 8283, Non-Cash Donated Items
- Complete all information here, at the bottom of the page check the box; if you were issued a 1098-C for this property and complete the 1098-C Form Information.