IRS Unveils New Form 1098-C For Donations Of Vehicles, Boats and Planes; Provides Transition Rules

Abstract

According to Announcement 2005-66, the IRS has released new Form 1098-C, Contributions of Motor Vehicles, Boats and Airplanes. The new form must be used by charities to report vehicle donations to donors and the IRS. Generally, the donor may not deduct a value greater than what the charity realizes from the sale of the vehicle unless the charity uses the vehicle in its charitable activities.