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Understanding Form 1098-C
Form 1098-C is an IRS information return titled “Contributions of Motor Vehicles, Boats, and Airplanes.”
Charities and certain tax-exempt organizations must issue this form when they receive a qualified vehicle or property donation valued over $500.
The form reports details about:
- The donated vehicle or property
- How the organization uses or disposes of the property
- The value deduction the donor may claim
It ensures donors receive proper documentation to claim tax deductions and keeps organizations IRS-compliant.
Who Must File Form 1098-C?
You must file Form 1098-C if your organization receives a motor vehicle, boat, or airplane donation valued at more than $500.
This includes:
- Charitable organizations
- Nonprofits and tax-exempt organizations
- Religious, educational, and community organizations
-
Any donee organization that sells, transfers, or materially uses the
donated property
If you provide a written acknowledgment to the donor, a Form 1098-C is required.
When is the Deadline to File Form 1098-C?
Here are the IRS deadlines to file Form 1098-C for the 2025 tax year.
Donor Copy
30 days from Date of Sale or Contribution
IRS Efiling
March 31, 2026
IRS Paper Filing
March 02, 2026
Information Required to File Form 1098-C
Discover the key details required to complete your 1098-C filing accurately.
Donee (Charity) Details
Name, EIN, and Address
Contribution & Vehicle Details
- Date of Contribution
- Vehicle Info — VIN, Year, Make, Model, Odometer (if applicable)
Donor Details & Sale Information
- Donor Name, TIN, and Address
- Sale Certification, Date of Sale, and Gross Proceeds (if sold)
Donee Certifications
- Material Improvements or Significant Use
- Transfer to Needy Individual
- No transfer before improvements/use
Goods or Services Provided
Whether Goods/Services Were Provided
- Value of Goods/Services
- Description or Religious Benefits
(if applicable)
How TaxBandits Simplifies Your Form 1098-C Filing
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Easy Data Import Options
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Built-in Error Checks
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Donor Copy Distribution
We handle donor copies through postal mail, secure online access, or both.
Free Corrections
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Solutions Built for Tax Pros & High Volume Filers
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Frequently Asked Questions on Form 1098-C
When do I need to issue Form 1098-C?
You must issue Form 1098-C whenever you receive a donated vehicle, boat, or airplane valued at more than $500.
Does Form 1098-C apply if the vehicle is used by the charity?
Yes. If the organization plans to materially use or improve the vehicle, it must still file Form 1098-C and indicate intended use.
What if the property is sold immediately?
If sold without significant use or improvement, you must report the gross proceeds from the sale on Form 1098-C.
Are there exceptions to filing Form 1098-C?
Yes, exceptions apply if:
- The donated item is valued at $500 or less
- The donor receives no deduction
- The property is not a motor vehicle, boat, or airplane
What are the IRS penalties for filing late?
Penalties range from $60 to $680 per form, depending on how late the filing is and whether the donor copy is missing or incorrect.
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