Contributions of Motor Vehicles, Boats, and Airplanes

2015

Instructions for Form 1098-C

Department of the Treasury
Internal Revenue Service

Contributions of Motor Vehicles, Boats, and Airplanes
Section references are to the Internal Revenue Code unless otherwise
noted.

Future Developments

For the latest information about developments related to Form 1098-C
and its instructions, such as legislation enacted after they were
published, go to www.irs.gov/form1098c.

What's New

Truncating donor's identification number on written acknowledgments. Pursuant to Treasury Regulations section 301.6109-4, all filers
of this form may truncate a donor’s identification number (social security
number (SSN), individual taxpayer identification number (ITIN), adoption
taxpayer identification number (ATIN), or employer identification number
(EIN)) on written acknowledgments. Truncation is not allowed on any
documents the filer files with the IRS. A donee organization’s
identification number may not be truncated on any form. See part J in the
2015 General Instructions for Certain Information Returns.

Reminder

Do not file Form 1098-C for a contribution of a qualified vehicle
with a claimed value of $500 or less. However, you may use it
CAUTION
as the contemporaneous written acknowledgment under
section 170(f)(8) by providing the donor with Copy C only. If you use
Copy C as the acknowledgment, you must check box 7. In addition, do
not complete boxes 4a through 5c or enter the donor's identification
number on the form. You may, but are not required to, enter the donee's
federal identification number on the form.

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Section 6720 Penalties

Section 6720 imposes penalties on any donee organization that is
required under section 170(f)(12) to furnish an acknowledgment to a
donor if the donee organization knowingly:
Furnishes a false or fraudulent acknowledgment, or
Fails to furnish an acknowledgment in the manner, at the time, and
showing the information required by section 170(f)(12).

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CAUTION

In addition to these specific instructions, you should also use the 2015
General Instructions for Certain Information Returns. Those general
instructions include information about the following topics.
Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Backup withholding.
Penalties.
Other general topics.
You can get the general instructions at www.irs.gov/form1098c or by
calling 1-800-TAX-FORM (1-800-829-3676).

Specific Instructions
Who Must File

A donee organization must file a separate Form 1098-C, Contributions of
Motor Vehicles, Boats, and Airplanes, with the IRS for each contribution
of a qualified vehicle that has a claimed value of more than $500. A
qualified vehicle is any motor vehicle manufactured primarily for use on
public streets, roads, and highways; a boat; or an airplane. However,
property held by the donor primarily for sale to customers, such as
inventory of a car dealer, is not a qualified vehicle.

Contemporaneous Written Acknowledgment

If a donor contributes a qualified vehicle to you with a claimed value of
more than $500, you must furnish a contemporaneous written
acknowledgment of the contribution to the donor under section 170(f)
(12) containing the same information shown on Form 1098-C.
Otherwise, the donor cannot claim a deduction of more than $500 for
that vehicle. Copy B of Form 1098-C may be used for this purpose. An
acknowledgment is considered contemporaneous if it is furnished to the
donor no later than 30 days after the:
Date of the sale, if you are required to check box 4a, or
Date of the contribution, if you are required to check box 5a or 5b.

An acknowledgment containing a certification described in box 5a or
5b will be presumed to be false or fraudulent if the qualified vehicle is
sold to a buyer other than a needy individual (as explained in the
instructions for box 5b) without a significant intervening use or material
improvement (as explained in the instructions for box 5a) within 6
months of the date of the contribution. If a charity sells a donated vehicle
at auction, the IRS will not accept as substantiation an acknowledgment
from the charity stating the vehicle is to be transferred to a needy
individual for significantly below fair market value. Vehicles sold at
auction are not sold at prices significantly below fair market value, and
the IRS will not treat vehicles sold at auction as qualifying for this
exception.
The penalty for an acknowledgment relating to a qualified vehicle for
which box 4a must be checked is the larger of:
The gross proceeds from the sale, or
The sales price stated in the acknowledgment multiplied by 39.6%.
The penalty for an acknowledgment relating to a qualified vehicle for
which box 5a or 5b must be checked is the larger of:
$5,000, or
The claimed value of the vehicle multiplied by 39.6%.

Donor's Identification Number

See part J of the 2015 General Instructions for Certain Information
Returns for details on requesting the donor's identification number. If the
donor does not provide an identification number, you must check box 7
because the acknowledgment will not meet the requirements of section
170(f)(12) and the donor will not be allowed to claim a deduction of more
than $500 for the qualified vehicle.

Box 1. Date of Contribution

Enter the date you received the motor vehicle, boat,
or airplane from the donor.

Boxes 2a, 2b, 2c, and 2d. Odometer Mileage,
Year, Make, and Model of Vehicle

Enter the appropriate information in each box. Enter mileage only for
motor vehicles in box 2a. The following table shows three examples.

Provide the donor with Copies B and C of Form 1098-C or your own
acknowledgment that contains the required information. For
contributions for which you completed an acknowledgment in calendar
year 2015, file Copy A by February 29, 2016 (March 31, 2016, if filed
electronically). See the 2015 General Instructions for Certain Information
Returns for more information on how to file.
Sep 29, 2014

Other penalties may apply. See part O in the 2015 General
Instructions for Certain Information Returns.

Cat. No. 39750N

Box 2a Odometer
mileage

Box 2b - Year

Box 2c - Make

Box 2d - Model

90,000

2004

Ford

Explorer

Example 2 airplane

1966

Piper

Cub

Example 3 boat

2006

Larson

LXI 210

Example 1 car

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CAUTION

Driving a vehicle for 10,000 miles over a 1-year period to deliver meals
to needy individuals, if delivering meals is an activity regularly conducted
by the organization.
Material improvements include major repairs and additions that
improve the condition of the vehicle in a manner that significantly
increases the value. To be a material improvement, the improvement
cannot be funded by an additional payment to the donee from the donor
of the vehicle. Material improvements do not include cleaning, minor
repairs, routine maintenance, painting, removal of dents or scratches,
cleaning or repair of upholstery, and installation of theft deterrent
devices.

Box 5b. Vehicle To Be Transferred to a Needy
Individual for Significantly Below Fair Market
Value

Donees must ensure that the odometer reading is in miles, not
kilometers. If the odometer is calibrated in kilometers, you must
convert the kilometers to miles using the following calculation.

Check box 5b if you intend to sell the vehicle to a needy individual at a
price significantly below fair market value or make a gratuitous transfer of
the vehicle to a needy individual in direct furtherance of your
organization's charitable purpose of relieving the poor and distressed or
underprivileged who are in need of a means of transportation. Do not
enter any amount in box 4c. The donor's contribution deduction for a
sale for this purpose is not limited to the gross proceeds from the sale.
Skip this box if the qualified vehicle has a claimed value of $500 or less.

Kilometers x 0.62137 = miles.

Box 3. Vehicle or Other Identification Number

For any vehicle contributed, this number is generally affixed to the
vehicle. For a motor vehicle, the vehicle identification number is 17
alphanumeric characters in length. Refer to the vehicle owner's manual
for the location of the vehicle identification number. For a boat, the hull
identification number is 12 characters in length and is usually located on
the starboard transom. For an airplane, the aircraft identification number
is 6 alphanumeric characters in length and is located on the tail of a U.S.
aircraft.

Box 5c. Description of Material Improvements or
Significant Intervening Use and Duration of Use

Describe in detail the intended material improvements to be made by the
organization or the intended significant intervening use and duration of
the use by the organization. Skip this box if the qualified vehicle has a
claimed value of $500 or less.

Box 4a. Vehicle Sold in Arm's Length
Transaction to Unrelated Party

If the vehicle is sold to a buyer other than a needy individual (as
explained in the instructions for box 5b) without a significant intervening
use or material improvement (as explained in the instructions for box 5a),
you must certify that the sale was made in an arm's length transaction
between unrelated parties. Check the box to make the certification. Also
complete boxes 4b and 4c. Skip this box if the qualified vehicle has a
claimed value of $500 or less.

Box 6a. Checkbox for Whether Donee Provided
Goods and Services in Exchange for the Vehicle
Described
You must check the box to indicate whether you provided goods or
services to the donor in exchange for the vehicle described in boxes 2a,
2b, 2c, 2d, and 3.

Box 4b. Date of Sale

Box 6b. Value of Goods and Services Provided
in Exchange for the Vehicle Described

If you checked box 4a, enter the date that the vehicle was sold in the
arm's length transaction. Skip this box if the qualified vehicle has a
claimed value of $500 or less.

If you checked “Yes” in box 6a, complete box 6b. You must give a good
faith estimate of the value of those goods and services including
intangible religious benefits. Include the value of any goods and services
you may provide in a year other than the year that the qualified vehicle
was donated. Pub. 561, Determining the Value of Donated Property,
provides guidance for providing an estimate for the value of goods and
services.

Box 4c. Gross Proceeds

If you checked box 4a, enter the gross proceeds from the sale of the
vehicle. This is generally the sales price. Do not reduce this amount by
any expenses or fees. Skip this box if the qualified vehicle has a claimed
value of $500 or less.

Box 5a. Vehicle Will Not Be Transferred Before
Completion of Material Improvements or
Significant Intervening Use

Box 6c. Description of the Goods and Services

If you checked “Yes” in box 6a, describe in detail the goods and
services, including intangible religious benefits, that were provided to the
donor. If the donor received only intangible religious benefits, check the
box.

If you intend to make a significant intervening use of or a material
improvement to this vehicle, you must check box 5a to certify that the
vehicle will not be transferred for cash, other property, or services before
completion of the use or improvement. Also complete box 5c. Skip this
box if the qualified vehicle has a claimed value of $500 or less.

An intangible religious benefit is one that is provided by an
organization organized exclusively for religious purposes and which
generally is not sold in a commercial transaction outside the donative
context.

There is significant intervening use only if the organization actually
uses the vehicle to substantially further the organization's regularly
conducted activities, and the use is significant, not incidental. Factors in
determining whether a use is a significant intervening use include its
nature, extent, frequency, and duration. For this purpose, use includes
providing transportation on a regular basis for a significant period of time
or significant use directly relating to training in vehicle repair. Use does
not include the use of a vehicle to provide training in business skills, such
as marketing or sales. Examples of significant use include:
Driving a vehicle every day for 1 year to deliver meals to needy
individuals, if delivering meals is an activity regularly conducted by the
organization, and

Box 7. Checkbox for a Vehicle With a Claimed
Value of $500 or Less

If the vehicle has a claimed value of $500 or less or the donor did not
provide a taxpayer identification number, you must check box 7. If you
check box 7, do not file Copy A with the IRS and do not furnish Copy B
to the donor.

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Instructions for Form 1098-C (2015)