What Is a 1098-C IRS Form? Know the Conditions for Getting Tax Deductions on Vehicles You Donate to Charity
If the amount is higher than $500, the charitable organization may send you’re your copy of a filled up Form 1098-C. You need to include this document to support your deduction claims when you file your itemized federal income tax return. In some cases, the Internal Revenue Service (IRS) may deny your deduction without Form 1098-C attached to your return, so make sure to include this.You may already be well aware that when you donate a vehicle ne to a charitable organization, you can claim a tax deduction the amount of which depends on how much your vehicle was sold by the organization.
Form 1098-C for Contributions of Motor Vehicles, Boats, and Airplanes is a source document that is filed with the IRS by the charitable organization whenever they receive a donated vehicle that has a selling price of more than $500.
Form 1098-C also takes note of your donated vehicle’s year, make and model, mileage reported on the date it was donated and the vehicle identification number. Your full name, address and Social Security number are also printed on the document.
If you received any goods or services from the charity, you may need to reduce your deduction claim by the value assigned to those goods and services.
When Form 1098-C Is Not Needed Anymore
When donating a vehicle to charity, you need to know certain things. If the vehicle you donated to charity was sold for $500 or less, you have two options in claiming your tax deduction — the sales amount or your vehicle’s fair market value. Of course, you will opt to choose the higher amount.
The charitable organization isn’t required to prepare a Form 1098-C for you if your vehicle’s claimed value is $500 or less. In this case, you don’t have to attach the form to your tax return.
Support a Worthy Cause
Aside from tax deductions, there is another important matter you have to consider when donating a vehicle to charity: What cause will it serve? If you believe in the cause the charity is espousing, then go ahead and make your car donation.
With Veteran Car Donations, you can be sure that your car donation will be supporting a worthy cause – improving the living conditions of our veterans who are facing a multitude of problems such as poverty, unemployment, lack of support and source of income, physical disabilities or injuries and psychological trauma due to their wartime experiences, and homelessness.
How Your Car Donation Will Benefit Our Veterans
That old car of yours that is just gathering dust in your garage can turn into something meaningful and valuable to our veterans. It can help sustain the support programs of our non-profit organization partners that will benefit our veterans in so many ways. Your car donation can help:
- Provide financial and medical assistance to our suffering veterans;
- Build custom-made and mortgage-free homes for those who are physically handicapped and homeless;
- Fund skills training programs to enable unemployed veterans to qualify for decent jobs;
- Fund scholarships to allow undergraduate veterans to finish college;
- Provide grief counseling sessions to assuage the families of our fallen heroes.
The Benefits You’ll Get for Donating Any Vehicle
You can donate any vehicle — a car, an SUV, RV, boat, motorcycle, or even an airplane. It doesn’t even matter if the vehicle runs or not. We will take your vehicle regardless of its condition as long as it has good enough cash value.
You will be reaping tons of benefits as you partner with us. For helping our veterans, you will be rewarded with a maximized tax deduction! We will make sure that you will be able to get the highest deduction possible for your donation.
You will also be saving more money as you no longer need to pay for car repairs, insurance, registration, or maintenance fees!
You will also love our fast, free, no-hassle, and no-paperwork car donation process.