Form 1098-C – When you need to report contributions of airplanes, boats, and motor vehicles, the IRS requires you to report 1098-C.
When You Need to File 1098-C
If you donate a vehicle that amounts to a sum greater than $500, you must file 1098-C. Each contribution constitutes a new form.
For a motor vehicle to be qualified, its manufactured purpose must be mainly for use on highways, roads, and public streets. All boats and airplanes qualify.
Alternatively, items that donors regularly sell as inventory do not qualify for 1098-C. For example, a car dealer’s donation will not qualify.
Who Must File Form 1098-C
A donor organization is responsible for filing a Form 1098-C for each qualified vehicle.
Additionally, the organization that received the donation is required to fill out different documentation; it contains the same information that is collected on 1098-C.
This written acknowledgment is synchronous and must be furnished to the donor under section 170(f)(12) of Copy B of Form 1098-C.
This process allows the donor to be able to file the donation. An acknowledgment qualifies as contemporaneous, or synchronous if supplemented no later than 30 days following the:
- Date of the sale (for Box 4a) or
- Date of the contribution (for Box 5a or 5b)