Form 1098-C - Limitation of Donated Cars, Boats, and Planes

Your deduction for a donated car, boat, or airplane is generally limited to the gross proceeds from its sale by the qualified organization. This rule applies if the claimed value of the donated vehicle is more than $500. In certain cases, you can deduct the vehicle's Fair Market Value (FMV). For details, see IRS Publication 526 Charitable Contributions.

Strict substantiation requirements apply to prevent donors from claiming inflated deductions for donated vehicles where the charity actually received much less on a sale to raise cash.

Form 1098-C

You must attach to your return Copy B of Form 1098-C Contributions of Motor Vehicles, Boats, and Airplanes (or other statement containing the same information as Form 1098-C) you received from the organization. Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle. If you e-file your return, you 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.

If you don't attach Form 1098-C (or other statement), you can't deduct your contribution.

You must get Form 1098-C (or other statement) within 30 days of the sale of the vehicle. But if Exception 1 or 2 (described later) applies, you must get Form 1098-C (or other statement)within 30 days of your donation.

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