Who needs a 1098-C form?
Any donee organization, which will accept the specific vehicle for its own use on a free-of-charge basis.
What is for 1098-C form?
1098-C form is a document with the description of a vehicle, which will be granted by the donor to a recipient on a non-payment base; the value of the gifted vehicle must not be less than 500 USD.
Applicable vehicles include a motor vehicle, which may be used for traveling public streets, highways, and roads. Airplanes and motor boats are also applicable.
Such items like property for sale or the inventory of a car dealer cannot be qualified as vehicle. So, the 1098-C will not be used for filing in these instances.
Also, this form must not be filed if the value of vehicle is less than 500$ -- for this, you can use the 170(f)(8) only.
Is the 1098-C Form accompanied by other forms?
1098-C form may be accompanied by 170(f)(8) application; it is a necessary attachment to form 1096.
When is the 1098-C Form due?
Form 1098-C must be filed 30 days after the donation. A copy of it must be provided to the donor.
Also, the day of contribution must be provided inside the document.
How do I fill out the 1098-C Form?
To fill out this form, you must complete the 1096 form. After that you have to add the following information to the 1098-C form:
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Donee’s personal information
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Donor’s personal information
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Specifications of contribution
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Value of property granted by donor
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Checkbox, where donee guarantee that value of property is not less than 500$
Any failure in providing the information by donee or donor, may cause different kinds of penalties.
Where do I send the 1098-C Form?
The completed 1098-C form must be attached to the 1096 form and sent to the Department of the Treasury – Internal Revenue Service.
