Form 1098-C - Contributions of Motor Vehicles, Boats, and Airplanes is a source document that is filed with the IRS by a charitable organization whenever they receive a donation of a qualified vehicle with a claimed value of more than $500. For these purposes a qualified vehicle is considered any motor vehicle manufactured primarily for use on public streets, roads, and highways; a boat; or an airplane.
When a qualified charity receives a donation of a qualified vehicle where the donor is claiming a value of more than $500, the charity has to notify the IRS by filing Form 1098-C and the charity has to provide the taxpayer with a contemporaneous written acknowledgment of the donation. An acknowledgment is considered contemporaneous if it is furnished to the taxpayer no later than 30 days after the date of the sale of the vehicle, or the date of the contribution. Copy B of Form 1098-C is typically provided to the taxpayer as the contemporaneous written acknowledgment.
A taxpayer's itemized charitable deduction is generally limited to the actual sales prices of the vehicle when sold by the charity. There are situations when the taxpayer can deduct the vehicle's fair market value such as when the charity makes significant use of the vehicle, or otherwise donates or sells the vehicle to a needy individual at a significantly below-market price. See Publication 526 - Charitable Contributions for further information on whether the taxpayer's deduction is limited to the actual sales price of the vehicle.
To enter a Contribution of a Motor Vehicle, Boat or Airplane that is reported on Copy B of Form 1098-C into TaxSlayer Pro, from the Main Menu of the Tax Return (Form 1040) select:
- Itemized Deductions Menu
- Gifts to Charity (8283)
- Non-Cash More than $500 - 8283
- Select Section A (if property value is less than $5,000) or Section B (if property value is greater than $5,000)
- Select 'New' and enter all of the required information concerning the donated property on this menu. Upon exiting this screen, a summary menu will be presented which contains the question "Qualified Vehicle Donated?" which should be answered YES
- Enter all of the 1098-C information (or Contemporaneous Written Acknowledgment Statement).
Upon exiting the 1098-C Entry Menu you can attach a PDF of Copy B of Form 1098-C to the return. If you do not attach a PDF of Copy B of Form 1098-C (or other Contemporaneous Written Acknowledgment Statement), then you should submit Copy B of Form 1098-C (or other Contemporaneous Written Acknowledgment Statement) with Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return, and mail the forms to the IRS.
NOTE: This is a guide on entering Form 1098-C Contributions of Motor Vehicle, Boats, and Airplanes into the TaxSlayer Pro program. This is not intended as tax advice.