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Department of the Treasury
Internal Revenue Service
2019

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:
• Furnishes a false or fraudulent acknowledgment; or
Reminders • 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
include information about the following topics. Other penalties may apply. See part O in the Instructions for
• Who must file. ! Certain Information Returns General.
CAUTION
• When and where to file.
• 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
Online fillable form. Due to the very low volume of paper Forms not treat vehicles sold at auction as qualifying for this exception.
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 •
you are filing 250 or more forms. If, due to a low volume of recipients, • The sales price stated in the acknowledgment multiplied by 37%
you are filing the form(s) on paper, you can send in the black-and-white (0.37).
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:
• $5,000, or
Specific Instructions • 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
inventory of a car dealer, is not a qualified vehicle. Truncating donor's TIN on acknowledgements. Pursuant to
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
that vehicle. Copy B of Form 1098-C may be used for this purpose. An Box 1. Date of Contribution
acknowledgment is considered contemporaneous if it is furnished to the
donor no later than 30 days after the: Enter the date you received the motor vehicle, boat,
• Date of the sale, if you are required to check box 4a; or or airplane from the donor.
• Date of the contribution, if you are required to check box 5a or 5b.
Boxes 2a, 2b, 2c, and 2d. Odometer Mileage,
Provide the donor with Copies B and C of Form 1098-C or your own Year, Make, and Model of Vehicle
acknowledgment that contains the required information. See the General
Instructions for Certain Information Returns for information on how to file. Enter the appropriate information in each box. Enter mileage only for
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
CAUTION the contemporaneous written acknowledgment under section
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

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• 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
Example 1 - 90,000 2006 Ford Explorer Material improvements include major repairs and additions that
car improve the condition of the vehicle in a manner that significantly
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
Example 3 - 2008 Larson LXI 208 repairs, routine maintenance, painting, removal of dents or scratches,
boat cleaning or repair of upholstery, and installation of theft deterrent
devices.

Donees must ensure that the odometer reading is in miles, not Box 5b. Vehicle To Be Transferred to a Needy
! kilometers. If the odometer is calibrated in kilometers, you must Individual for Significantly Below FMV
CAUTION 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
Kilometers x 0.62137 = miles. price significantly below FMV or make a gratuitous transfer of the vehicle
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
characters in length and is usually located on the starboard transom. For Box 5c. Description of Material Improvements or
an airplane, the aircraft identification number is 6 alphanumeric
characters in length and is located on the tail of a U.S. aircraft. Significant Intervening Use and Duration of Use
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
explained in the instructions for box 5b) without a significant intervening Box 6a. Checkbox for Whether Donee Provided
use or material improvement (as explained in the instructions for box 5a),
you must certify that the sale was made in an arm's length transaction Goods and Services in Exchange for the Vehicle
between unrelated parties. Check the box to make the certification. Also Described
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
If you checked box 4a, enter the date that the vehicle was sold in the Box 6b. Value of Goods and Services Provided
arm's length transaction. Skip this box if the qualified vehicle has a
claimed value of $500 or less. in Exchange for the Vehicle Described
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
If you intend to make a significant intervening use of or a material donor. If the donor received only intangible religious benefits, check the
improvement to this vehicle, you must check box 5a to certify that the box.
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
There is significant intervening use only if the organization actually context.
uses the vehicle to substantially further the organization's regularly
conducted activities, and the use is significant, not incidental. Factors in Box 7. Checkbox for a Vehicle With a Claimed
determining whether a use is a significant intervening use include its
nature, extent, frequency, and duration. For this purpose, use includes Value of $500 or Less
providing transportation on a regular basis for a significant period of time If the vehicle has a claimed value of $500 or less or the donor did not
or significant use directly relating to training in vehicle repair. Use does provide a TIN, you must check box 7. If you check box 7, do not file
not include the use of a vehicle to provide training in business skills, such Copy A with the IRS and do not furnish Copy B to the donor.
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.

-2- Instructions for Form 1098-C (2019)

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