Instructions for Form 1098-C

(Rev. November 2019)

Contributions of Motor Vehicles, Boats, and Airplanes

Department of the Treasury

Internal Revenue Service

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 IRS.gov/Form1098C.

Reminders

In addition to these specific instructions, you also should use the current 

General Instructions for Certain Information Returns. Those general 

instructions include information about the following topics.

• Who must file.

• When and where to file.

• Electronic reporting.

• Corrected and void returns.

• Statements to recipients.

• Taxpayer identification numbers (TINs).

• Backup withholding.

• Penalties.

• Other general topics.

You can get the general instructions at IRS.gov/

1099GeneralInstructions or IRS.gov/Form1098C.

Continuous-use form and instructions. Form 1098-C and these 

instructions have been converted from an annual revision to continuous 

use. Both the form and instructions will be updated as needed. For the 

most recent version, go to IRS.gov/Form1098C.

Online fillable form. Due to the very low volume of paper Forms 

1098-C received and processed by the IRS each year, this form has 

been converted to an online fillable format. You may fill out this form, 

found online at IRS.gov/Form1098C, and send Copies B and C to the 

donor. For filing with the IRS, follow the applicable procedures if you are 

required to file electronically, or, for this form only, if you are qualified 

to file on paper, send in the black-and-white copy A with Form 1096 that 

you print from the IRS website.

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.

Provide the donor with Copies B and C of Form 1098-C or your own 

acknowledgment that contains the required information. See the current 

General Instructions for Certain Information Returns for information on 

how to file.

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 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 TIN on the form. You 

may, but are not required to, enter the donee's federal TIN on the form.

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).

Other penalties may apply. See part O in the current General 

Instructions for Certain Information Returns.

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 (FMV). Vehicles sold at 

auction are not sold at prices significantly below FMV, 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% 

(0.396).

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% (0.396).

Donor's TIN

See part J of the current General Instructions for Certain Information 

Returns for details on requesting the donor's TIN. If the donor does not 

provide a TIN, 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.

Truncating donor's TIN on acknowledgements. Pursuant to 

Regulations section 301.6109-4, all filers of this form may truncate a 

donor’s TIN (social security number (SSN), individual taxpayer 

identification number (ITIN), adoption taxpayer identification number 

(ATIN), or employer identification number (EIN)) on written 

acknowledgements. Truncation is not allowed on any documents the filer 

files with the IRS. A filer’s TIN may not be truncated on any form. See 

part J in the current General Instructions for Certain Information Returns.

Box 1. Date of Contribution

Enter the date you received the motor vehicle, boat,

or airplane from the donor.

CAUTION

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CAUTION

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Oct 30, 2019 Cat. No. 39750N
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.

Box 2a - 

Odometer 

mileage 

Box 2b - Year Box 2c - Make Box 2d - Model

Example 1 - 

car

90,000 2006 Ford Explorer

Example 2 - 

airplane

1968 Piper Cub

Example 3 - 

boat

2008 Larson LXI 208

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.

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 (VIN) is 17 

alphanumeric characters in length. Refer to the vehicle owner's manual 

for the location of the VIN. 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 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 4b. Date of Sale

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.

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

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.

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 

CAUTION

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not include the use of a vehicle to provide training in business skills, such 

as marketing or sales. Examples of significant use include the following.

• 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.

• 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 FMV

Check box 5b if you intend to sell the vehicle to a needy individual at a 

price significantly below FMV 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.

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 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 6b. Value of Goods and Services Provided 

in Exchange for the Vehicle Described

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 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.

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.

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 TIN, 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.

-2- Instructions for Form 1098-C (Rev. 11-2019)