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    IRS Form 1098-C

    Form 1098-C: Contributions of Motor Vehicles, Boats, and Airplanes

    Report contributions of vehicles, boats, and airplanes valued over $500.

    Filing Deadline

    30 days after sale or use of vehicle / February 28 (paper) or March 31 (e-file) to IRS

    Threshold

    Vehicles claimed over $500

    Purpose

    Limits donor's deduction to actual sale price (usually)

    Overview

    Form 1098-C is used by donee organizations (charities) to report contributions of motor vehicles, boats, and airplanes when the donor claims a deduction of more than $500.

    The form establishes the donor's deduction limit, which is generally the gross proceeds from the sale of the vehicle unless specific conditions are met allowing the donor to claim fair market value.

    Who Must File

    Required Filers

    • •Qualified charitable organizations (501(c)(3)) receiving vehicle donations
    • •Donor claims deduction over $500 for the vehicle
    • •Must file within 30 days of vehicle sale or use
    • •Applies to cars, trucks, boats, airplanes

    Exceptions & Notes

    • ✕Not required if donor claims $500 or less (regular donation receipt suffices)
    • ✕Different rules if charity makes significant intervening use or material improvement

    Form Structure & Instructions

    Here's what information is required in each section:

    Vehicle and Donation Information

    Details about the donated vehicle

    Box 1
    Date of Contribution
    Date donor transferred the vehicle
    Box 2a
    Date of Sale
    Date charity sold the vehicle (if sold)
    Box 2b
    Gross Proceeds
    Sale price if charity sold the vehicle
    Box 3
    Charity Certifies Use
    Check if significant use or material improvement

    Deduction and Vehicle Details

    Information determining donor's deduction

    Box 4a
    Intended Use Description
    How charity will use or improve the vehicle
    Box 4b
    Duration of Intended Use
    How long charity intends to use vehicle
    Box 4c
    Material Improvement Description
    Description of major repairs or improvements
    Box 5a-d
    Vehicle Identification
    Year, make, model, and VIN of vehicle

    Additional Information

    Special circumstances

    Box 6
    Goods/Services Provided
    Check if donor received goods or services
    Box 7
    Value of Goods/Services
    Value of any benefit provided to donor

    Important Filing Notes

    Deduction Usually Limited to Sale Price

    If charity sells the vehicle without significant use, donor's deduction is limited to gross proceeds (Box 2b), regardless of vehicle's fair market value.

    Exceptions Allowing FMV Deduction

    Donor can claim FMV if: (1) charity makes significant intervening use, (2) charity makes material improvements, or (3) charity gives/sells vehicle to needy individual at below market price.

    30-Day Filing Deadline

    Charity must provide Form 1098-C to donor within 30 days of sale (if sold) or within 30 days of donation (if kept for significant use). Late filing can disallow donor's deduction.

    Donor Must Attach to Return

    Donor must attach Copy B of Form 1098-C to their tax return to claim deduction over $500. Without it, deduction will be disallowed.

    Additional Resources

    Form 1098-C (PDF)
    Official IRS Form 1098-C
    Instructions for Form 1098-C
    Complete filing instructions
    Publication 4303
    A Donor's Guide to Vehicle Donations

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