2019
Department of the Treasury
Internal Revenue Service
Instructions for Form 1098-C
Contributions of Motor Vehicles, Boats, and Airplanes
Section references are to the Internal Revenue Code unless otherwise
complete boxes 4a through 5c or enter the donor's TIN on the form. You
noted.
may, but are not required to, enter the donee's federal TIN on the form.
Future Developments
Section 6720 Penalties
For the latest information about developments related to Form 1098-C
Section 6720 imposes penalties on any donee organization that is
and its instructions, such as legislation enacted after they were
required under section 170(f)(12) to furnish an acknowledgment to a
published, go to IRS.gov/Form1098C.
donor if the donee organization knowingly:
Reminders
Furnishes a false or fraudulent acknowledgment; or
Fails to furnish an acknowledgment in the manner, at the time, and
In addition to these specific instructions, you also should use the
General
showing the information required by section 170(f)(12).
Instructions for Certain Information
Returns. Those general instructions
Other penalties may apply. See part O in the Instructions for
include information about the following topics.
Certain Information Returns General.
!
Who must file.
When and where to file.
CAUTION
Electronic reporting.
An acknowledgment containing a certification described in box 5a or
Corrected and void returns.
5b will be presumed to be false or fraudulent if the qualified vehicle is
Statements to recipients.
sold to a buyer other than a needy individual (as explained in the
Taxpayer identification numbers (TINs).
instructions for box 5b) without a significant intervening use or material
Backup withholding.
improvement (as explained in the instructions for box 5a) within 6
Penalties.
months of the date of the contribution. If a charity sells a donated vehicle
Other general topics.
at auction, the IRS will not accept as substantiation an acknowledgment
from the charity stating the vehicle is to be transferred to a needy
You can get the general instructions at
IRS.gov/
individual for significantly below fair market value (FMV). Vehicles sold at
1099GeneralInstructions
or IRS.gov/Form1098C.
auction are not sold at prices significantly below FMV, and the IRS will
not treat vehicles sold at auction as qualifying for this exception.
Online fillable form. Due to the very low volume of paper Forms
1098-C received and processed by the IRS each year, this form has
The penalty for an acknowledgment relating to a qualified vehicle for
been converted to an online fillable format. You may fill out this form,
which box 4a must be checked is the larger of:
found online at IRS.gov/Form1098C, and send Copy B to the donor. For
The gross proceeds from the sale, or
filing with the IRS, follow your usual procedures for filing electronically if
The sales price stated in the acknowledgment multiplied by 37%
you are filing 250 or more forms. If, due to a low volume of recipients,
(0.37).
you are filing the form(s) on paper, you can send in the black-and-white
Copy(ies) A with a Form 1096 you print from the IRS website.
The penalty for an acknowledgment relating to a qualified vehicle for
which box 5a or 5b must be checked is the larger of:
Specific Instructions
$5,000, or
The claimed value of the vehicle multiplied by 37% (0.37).
Who Must File
Donor's TIN
A donee organization must file a separate Form 1098-C, Contributions of
See part J of the
General Instructions for Certain Information Returns
for
Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution
details on requesting the donor's TIN. If the donor does not provide a
of a qualified vehicle that has a claimed value of more than $500. A
TIN, you must check box 7 because the acknowledgment will not meet
qualified vehicle is any motor vehicle manufactured primarily for use on
the requirements of section 170(f)(12) and the donor will not be allowed
public streets, roads, and highways; a boat; or an airplane. However,
to claim a deduction of more than $500 for the qualified vehicle.
property held by the donor primarily for sale to customers, such as
Truncating donor's TIN on acknowledgements. Pursuant to
inventory of a car dealer, is not a qualified vehicle.
Regulations section 301.6109-4, all filers of this form may truncate a
donor’s TIN (social security number (SSN), individual taxpayer
Contemporaneous Written Acknowledgment
identification number (ITIN), adoption taxpayer identification number
If a donor contributes a qualified vehicle to you with a claimed value of
(ATIN), or employer identification number (EIN)) on written
more than $500, you must furnish a contemporaneous written
acknowledgements. Truncation is not allowed on any documents the filer
acknowledgment of the contribution to the donor under section 170(f)
files with the IRS. A filer’s TIN may not be truncated on any form. See
(12) containing the same information shown on Form 1098-C.
part J in the
General Instructions for Certain Information
Returns.
Otherwise, the donor cannot claim a deduction of more than $500 for
Box 1. Date of Contribution
that vehicle. Copy B of Form 1098-C may be used for this purpose. An
acknowledgment is considered contemporaneous if it is furnished to the
Enter the date you received the motor vehicle, boat,
donor no later than 30 days after the:
or airplane from the donor.
Date of the sale, if you are required to check box 4a; or
Date of the contribution, if you are required to check box 5a or 5b.
Boxes 2a, 2b, 2c, and 2d. Odometer Mileage,
Year, Make, and Model of Vehicle
Provide the donor with Copies B and C of Form 1098-C or your own
acknowledgment that contains the required information. See the
General
Enter the appropriate information in each box. Enter mileage only for
Instructions for Certain Information Returns
for information on how to file.
motor vehicles in box 2a. The following table shows three examples.
Do not file Form 1098-C for a contribution of a qualified vehicle
with a claimed value of $500 or less. However, you may use it as
!
the contemporaneous written acknowledgment under section
CAUTION
170(f)(8) by providing the donor with Copy C only. If you use Copy C as
the acknowledgment, you must check box 7. In addition, do not
Nov 02, 2018
Cat. No. 39750N
2019
Department of the Treasury
Internal Revenue Service
Instructions for Form 1098-C
Contributions of Motor Vehicles, Boats, and Airplanes
Section references are to the Internal Revenue Code unless otherwise
complete boxes 4a through 5c or enter the donor's TIN on the form. You
noted.
may, but are not required to, enter the donee's federal TIN on the form.
Future Developments
Section 6720 Penalties
For the latest information about developments related to Form 1098-C
Section 6720 imposes penalties on any donee organization that is
and its instructions, such as legislation enacted after they were
required under section 170(f)(12) to furnish an acknowledgment to a
published, go to IRS.gov/Form1098C.
donor if the donee organization knowingly:
Reminders
Furnishes a false or fraudulent acknowledgment; or
Fails to furnish an acknowledgment in the manner, at the time, and
In addition to these specific instructions, you also should use the
General
showing the information required by section 170(f)(12).
Instructions for Certain Information
Returns. Those general instructions
Other penalties may apply. See part O in the Instructions for
include information about the following topics.
Certain Information Returns General.
!
Who must file.
When and where to file.
CAUTION
Electronic reporting.
An acknowledgment containing a certification described in box 5a or
Corrected and void returns.
5b will be presumed to be false or fraudulent if the qualified vehicle is
Statements to recipients.
sold to a buyer other than a needy individual (as explained in the
Taxpayer identification numbers (TINs).
instructions for box 5b) without a significant intervening use or material
Backup withholding.
improvement (as explained in the instructions for box 5a) within 6
Penalties.
months of the date of the contribution. If a charity sells a donated vehicle
Other general topics.
at auction, the IRS will not accept as substantiation an acknowledgment
from the charity stating the vehicle is to be transferred to a needy
You can get the general instructions at
IRS.gov/
individual for significantly below fair market value (FMV). Vehicles sold at
1099GeneralInstructions
or IRS.gov/Form1098C.
auction are not sold at prices significantly below FMV, and the IRS will
not treat vehicles sold at auction as qualifying for this exception.
Online fillable form. Due to the very low volume of paper Forms
1098-C received and processed by the IRS each year, this form has
The penalty for an acknowledgment relating to a qualified vehicle for
been converted to an online fillable format. You may fill out this form,
which box 4a must be checked is the larger of:
found online at IRS.gov/Form1098C, and send Copy B to the donor. For
The gross proceeds from the sale, or
filing with the IRS, follow your usual procedures for filing electronically if
The sales price stated in the acknowledgment multiplied by 37%
you are filing 250 or more forms. If, due to a low volume of recipients,
(0.37).
you are filing the form(s) on paper, you can send in the black-and-white
Copy(ies) A with a Form 1096 you print from the IRS website.
The penalty for an acknowledgment relating to a qualified vehicle for
which box 5a or 5b must be checked is the larger of:
Specific Instructions
$5,000, or
The claimed value of the vehicle multiplied by 37% (0.37).
Who Must File
Donor's TIN
A donee organization must file a separate Form 1098-C, Contributions of
See part J of the
General Instructions for Certain Information Returns
for
Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution
details on requesting the donor's TIN. If the donor does not provide a
of a qualified vehicle that has a claimed value of more than $500. A
TIN, you must check box 7 because the acknowledgment will not meet
qualified vehicle is any motor vehicle manufactured primarily for use on
the requirements of section 170(f)(12) and the donor will not be allowed
public streets, roads, and highways; a boat; or an airplane. However,
to claim a deduction of more than $500 for the qualified vehicle.
property held by the donor primarily for sale to customers, such as
Truncating donor's TIN on acknowledgements. Pursuant to
inventory of a car dealer, is not a qualified vehicle.
Regulations section 301.6109-4, all filers of this form may truncate a
donor’s TIN (social security number (SSN), individual taxpayer
Contemporaneous Written Acknowledgment
identification number (ITIN), adoption taxpayer identification number
If a donor contributes a qualified vehicle to you with a claimed value of
(ATIN), or employer identification number (EIN)) on written
more than $500, you must furnish a contemporaneous written
acknowledgements. Truncation is not allowed on any documents the filer
acknowledgment of the contribution to the donor under section 170(f)
files with the IRS. A filer’s TIN may not be truncated on any form. See
(12) containing the same information shown on Form 1098-C.
part J in the
General Instructions for Certain Information
Returns.
Otherwise, the donor cannot claim a deduction of more than $500 for
Box 1. Date of Contribution
that vehicle. Copy B of Form 1098-C may be used for this purpose. An
acknowledgment is considered contemporaneous if it is furnished to the
Enter the date you received the motor vehicle, boat,
donor no later than 30 days after the:
or airplane from the donor.
Date of the sale, if you are required to check box 4a; or
Date of the contribution, if you are required to check box 5a or 5b.
Boxes 2a, 2b, 2c, and 2d. Odometer Mileage,
Year, Make, and Model of Vehicle
Provide the donor with Copies B and C of Form 1098-C or your own
acknowledgment that contains the required information. See the
General
Enter the appropriate information in each box. Enter mileage only for
Instructions for Certain Information Returns
for information on how to file.
motor vehicles in box 2a. The following table shows three examples.
Do not file Form 1098-C for a contribution of a qualified vehicle
with a claimed value of $500 or less. However, you may use it as
!
the contemporaneous written acknowledgment under section
CAUTION
170(f)(8) by providing the donor with Copy C only. If you use Copy C as
the acknowledgment, you must check box 7. In addition, do not
Nov 02, 2018
Cat. No. 39750N
Driving a vehicle for 10,000 miles over a 1-year period to deliver
Box 2a -
Box 2b - Year
Box 2c - Make Box 2d - Model
meals to needy individuals, if delivering meals is an activity regularly
Odometer
conducted by the organization.
mileage
Material improvements include major repairs and additions that
Example 1 -
90,000
2006
Ford
Explorer
improve the condition of the vehicle in a manner that significantly
car
increases the value. To be a material improvement, the improvement
Example 2 -
1968
Piper
Cub
cannot be funded by an additional payment to the donee from the donor
airplane
of the vehicle. Material improvements do not include cleaning, minor
repairs, routine maintenance, painting, removal of dents or scratches,
Example 3 -
2008
Larson
LXI 208
cleaning or repair of upholstery, and installation of theft deterrent
boat
devices.
Box 5b. Vehicle To Be Transferred to a Needy
Donees must ensure that the odometer reading is in miles, not
Individual for Significantly Below FMV
kilometers. If the odometer is calibrated in kilometers, you must
!
convert the kilometers to miles using the following calculation.
Check box 5b if you intend to sell the vehicle to a needy individual at a
CAUTION
price significantly below FMV or make a gratuitous transfer of the vehicle
Kilometers x 0.62137 = miles.
to a needy individual in direct furtherance of your organization's
charitable purpose of relieving the poor and distressed or
Box 3. Vehicle or Other Identification Number
underprivileged who are in need of a means of transportation. Do not
For any vehicle contributed, this number is generally affixed to the
enter any amount in box 4c. The donor's contribution deduction for a
vehicle. For a motor vehicle, the vehicle identification number (VIN) is 17
sale for this purpose is not limited to the gross proceeds from the sale.
alphanumeric characters in length. Refer to the vehicle owner's manual
Skip this box if the qualified vehicle has a claimed value of $500 or less.
for the location of the VIN. For a boat, the hull identification number is 12
Box 5c. Description of Material Improvements or
characters in length and is usually located on the starboard transom. For
an airplane, the aircraft identification number is 6 alphanumeric
Significant Intervening Use and Duration of Use
characters in length and is located on the tail of a U.S. aircraft.
Describe in detail the intended material improvements to be made by the
Box 4a. Vehicle Sold in Arm's Length
organization or the intended significant intervening use and duration of
the use by the organization. Skip this box if the qualified vehicle has a
Transaction to Unrelated Party
claimed value of $500 or less.
If the vehicle is sold to a buyer other than a needy individual (as
Box 6a. Checkbox for Whether Donee Provided
explained in the instructions for box 5b) without a significant intervening
use or material improvement (as explained in the instructions for box 5a),
Goods and Services in Exchange for the Vehicle
you must certify that the sale was made in an arm's length transaction
Described
between unrelated parties. Check the box to make the certification. Also
complete boxes 4b and 4c. Skip this box if the qualified vehicle has a
You must check the box to indicate whether you provided goods or
claimed value of $500 or less.
services to the donor in exchange for the vehicle described in boxes 2a,
2b, 2c, 2d, and 3.
Box 4b. Date of Sale
Box 6b. Value of Goods and Services Provided
If you checked box 4a, enter the date that the vehicle was sold in the
arm's length transaction. Skip this box if the qualified vehicle has a
in Exchange for the Vehicle Described
claimed value of $500 or less.
If you checked “Yes” in box 6a, complete box 6b. You must give a good
Box 4c. Gross Proceeds
faith estimate of the value of those goods and services including
intangible religious benefits. Include the value of any goods and services
If you checked box 4a, enter the gross proceeds from the sale of the
you may provide in a year other than the year that the qualified vehicle
vehicle. This is generally the sales price. Do not reduce this amount by
was donated. Pub. 561, Determining the Value of Donated Property,
any expenses or fees. Skip this box if the qualified vehicle has a claimed
provides guidance for providing an estimate for the value of goods and
value of $500 or less.
services.
Box 5a. Vehicle Will Not Be Transferred Before
Box 6c. Description of the Goods and Services
Completion of Material Improvements or
If you checked “Yes” in box 6a, describe in detail the goods and
Significant Intervening Use
services, including intangible religious benefits, that were provided to the
donor. If the donor received only intangible religious benefits, check the
If you intend to make a significant intervening use of or a material
box.
improvement to this vehicle, you must check box 5a to certify that the
vehicle will not be transferred for cash, other property, or services before
An intangible religious benefit is one that is provided by an
completion of the use or improvement. Also complete box 5c. Skip this
organization organized exclusively for religious purposes and which
box if the qualified vehicle has a claimed value of $500 or less.
generally is not sold in a commercial transaction outside the donative
context.
There is significant intervening use only if the organization actually
uses the vehicle to substantially further the organization's regularly
Box 7. Checkbox for a Vehicle With a Claimed
conducted activities, and the use is significant, not incidental. Factors in
determining whether a use is a significant intervening use include its
Value of $500 or Less
nature, extent, frequency, and duration. For this purpose, use includes
If the vehicle has a claimed value of $500 or less or the donor did not
providing transportation on a regular basis for a significant period of time
provide a TIN, you must check box 7. If you check box 7, do not file
or significant use directly relating to training in vehicle repair. Use does
Copy A with the IRS and do not furnish Copy B to the donor.
not include the use of a vehicle to provide training in business skills, such
as marketing or sales. Examples of significant use include the following.
Driving a vehicle every day for 1 year to deliver meals to needy
individuals, if delivering meals is an activity regularly conducted by the
organization.
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Instructions for Form 1098-C (2019)
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