Form 1098-C, “Contributions of Motor Vehicles, Boats, and Airplanes”, is used by charitable organizations to report the donation of vehicles (cars, trucks, boats, or airplanes) that are donated to the charity. To qualify for Form 1098-C reporting, the vehicle donation must meet certain criteria.
Eligible Vehicles for 1098-C Reporting
- Motor Vehicles: This includes cars, trucks, vans, or any other motorized vehicle.
- Boats: This includes any kind of boat, including yachts, motorboats, and sailboats.
- Airplanes: Aircraft donations are also eligible for reporting on Form 1098-C.
Conditions for Reporting
A vehicle donation qualifies for Form 1098-C if:
- The vehicle is a motor vehicle, boat, or airplane.
- The donation is made to a qualified charitable organization (e.g., a 501(c)(3) nonprofit organization).
- The vehicle’s fair market value is more than $500. If the value is less than $500, the charity may not be required to file Form 1098-C, but the donor can still claim a deduction based on the vehicle’s fair market value.
- The vehicle is used by the charity for charitable purposes, or it is sold by the charity. If the vehicle is sold, the charity must provide the donor with an acknowledgment of the sale price or the vehicle’s fair market value.