Tax Guru-Ker$tetter Letter

Thursday, September 01, 2005

Donating Vehicles - New IRS Form

I’ve written a lot on the issue of donating vehicles to charities and the abuses by people claiming much higher values than they would actually sell for. As a result, our rulers in DC passed a law late last year limiting the deduction to whatever amount the charity was able to sell it for. This law took effect as of January 1, 2005.

In typical fashion, IRS has come out with a new form (1098–C) for the charities to fill out documenting the donations and sales amounts. You can download pdf versions of the 2005 Form 1098–C and its instructions from the IRS website.

IRS’s Announcement 2005-66
(This announcement will appear in Internal Revenue Bulletin 2005-39, dated September 26, 2005.)
The IRS has released new Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes.
The form is used by donee organizations to report the contribution of qualified vehicles to the IRS under new IRC section 170(f)(12). The form may also be used to provide the donor with a contemporaneous written acknowledgment of the contribution.

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 9/01/2005 09:09:00 PM Send this post: