What Is IRS Form 1098-C?
IRS Form 1098-C is used to report contributions of motor vehicles, boats, and airplanes valued at $500 or more that are donated to charitable organizations.
When you donate a qualifying vehicle, the charity must complete and submit Form 1098-C to the IRS. They must also provide you, the donor, with a copy. This form allows you to claim a charitable deduction on your income tax return, subject to IRS rules.
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How to Fill Out IRS Form 1098-C (Box by Box)
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Box 1: Date the charity received the donated vehicle.
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Boxes 2a–2c: Year, make, and model of the vehicle.
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Box 3: Vehicle Identification Number (VIN) or other identification number.
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Box 4a: Checkbox if the vehicle was sold in an arm’s length transaction to an unrelated party.
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Box 4b: Date of sale.
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Box 4c: Gross proceeds from the sale.
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If checked, the donor’s deduction is generally limited to the smaller of Box 4c or the vehicle’s fair market value.
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Box 5a: Checkbox if the vehicle will not be transferred for money, property, or services before significant improvements are made.
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Box 5b: Checkbox if the vehicle is to be transferred directly to someone in need at below market value.
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Box 5c: Description of material improvements made.
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Box 6a: Checkbox if the donation was in exchange for goods or services.
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Box 6b: Value of goods/services provided in exchange.
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Box 6c: Description of goods/services provided.
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Box 7: Checkbox if the donor may not claim a deduction greater than $500 for the vehicle.
Filing Requirements & Deadlines
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The donee organization must provide Copy B of Form 1098-C to the donor by January 31.
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Copy A must be filed with the IRS by February 28 (paper) or March 31 (e-file).
If the organization files electronically, they are exempt from using pre-printed red-ink forms.
How 1099fire Can Help
Charities and organizations that accept donated vehicles must comply with strict IRS reporting rules. That’s where 1099fire comes in:
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1098-C software for easy form preparation.
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E-file service to meet IRS deadlines quickly.
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Automatic error-checking to avoid costly rejections.
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Generate and distribute donor copies electronically or by mail.
👉 Visit 1099fire.com to simplify your 1098-C reporting process.
Key Takeaways
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IRS Form 1098-C reports donations of vehicles, boats, and airplanes valued at $500 or more.
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Donors use the form to claim charitable deductions, subject to IRS rules.
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Filing deadlines: January 31 (donor copy) and February 28/March 31 (IRS copy).
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1099fire software makes it easy to prepare, e-file, and distribute forms.