What is Form 1098-C?
Form 1098-C is used to report contributions of Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution of a qualified vehicle done by an organization that has a claimed a value of more than $500, the filer needs to include Copy B of Form 1098-C with their tax return. The donor cannot claim a deduction of more than $500 for that vehicle. A qualified vehicle is any motor vehicle manufactured primarily for use on public streets, roads, and highways; a boat; or an airplane.
If you e-file your return, the filer must:
- Attach Copy B of Form 1098-C to Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, and mail the forms to the IRS; or
- Include Copy B of Form 1098-C as a PDF attachment if your software program allows it.
An acknowledgment needs to be submitted no later than 30 days after the sale of the vehicle, or the date of the contribution.
How to File IRS Form 1098-C?
Information required to file Form 1098-C
- Taxpayer’s (Donee) information
- Vehicle’s information
- Sales details
IRS requires that all income and deductible expenses are reported by businesses and individuals or penalties could apply. Each sale of a donated vehicle must have gross proceeds of $500 or more.
- Box 1: Date of contribution
- Box 2a to 2d: Vehicle model details
- Box 3: Vehicle or other identification numbers
- Box 4a to 4c: Vehicle sold details
- Box 5a to 5c: Vehicle transferred details
- Box 6a to 6c: Goods and Service details
- Box 7: Checkbox for a Vehicle with a Claimed Value of $500 or Less
Who can use Form 1098-C?
A donee organization must file a separate Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $500.
There are three copies of the forms the first copy goes to the IRS; the second copy goes to the Donor and the third copy goes to the Donor’s Records. The donor will be provided with Copies B and C of Form 1098-C or the filer’s acknowledgment that contains the required information. If the filer does not attach Form 1098-C (or another statement), the contribution will not be deducted.
Tax2efile is equipped to help you handle numerous filing requirements and we will be happy to help you do your filing. We also offer printing and mailing services to complete the process for you.
Form 1098-C deadline?
30 days from the Date of Sale or Contribution
IRS Paper Filing
IRS Electronic Filing
Note: If the due date/deadline falls on a Saturday, Sunday, or federal holidays, the filer may need to E-file on the next business day.
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