Instructions For Form 1098-C - 2006 (Page 4 of 25) in pdf

Box 2. Make, Model, and Year of Vehicle

Material improvements include major repairs and additions

that improve the condition of the vehicle in a manner that

Enter this information in the order stated. For example,

significantly increases the value. To be a material improvement,

enter “Ford Explorer, 2000,” “Piper Cub, 1962,” or “Larson LXI

the improvement cannot be funded by an additional payment to

210, 2002.”

the donee from the donor of the vehicle. Material improvements

Box 3. Vehicle or Other Identification Number

do not include cleaning, minor repairs, routine maintenance,

painting, removal of dents or scratches, cleaning or repair of

For any vehicle contributed, this number is generally affixed to

upholstery, and installation of theft deterrent devices.

the vehicle. For a motor vehicle, the vehicle identification

number is 17 alpha/numeric characters in length. Refer to the

Box 5b. Vehicle To Be Transferred to a Needy

vehicle owner’s manual for the location of the vehicle

Individual for Significantly Below Fair Market

identification number. For a boat, the hull identification number

Value

is 12 characters in length and is usually located on the

starboard transom. For an airplane, the aircraft identification

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

number is 6 alpha/numeric characters in length and is located

individual at a price significantly below fair market value or

on the tail of a U.S. aircraft.

make a gratuitous transfer of the vehicle to a needy individual in

direct furtherance of your organization’s charitable purpose of

Box 4a. Vehicle Sold in Arm’s Length

relieving the poor and distressed or underprivileged who are in

Transaction to Unrelated Party

need of a means of transportation. Do not enter any amount in

If the vehicle is sold to a buyer other than a needy individual (as

box 4c. The donor’s contribution for a sale for this purpose is

explained in the instructions for box 5b) without a significant

not limited to the gross proceeds from the sale. Skip this box if

intervening use or material improvement (as explained in the

the qualified vehicle has a claimed value of $500 or less.

instructions for box 5a), you must certify that the sale was

Box 5c. Description of Material Improvements or

made in an arm’s length transaction between unrelated parties.

Check the box to make the certification. Also complete boxes

Significant Intervening Use and Duration of Use

4b and 4c. Skip this box if the qualified vehicle has a claimed

Describe in detail the intended material improvements to be

value of $500 or less.

made by the organization or the intended significant intervening

Box 4b. Date of Sale

use and duration of the use by the organization. Skip this box if

the qualified vehicle has a claimed value of $500 or less.

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

Box 6a. Checkbox for Whether Donee Provided

vehicle has a claimed value of $500 or less.

Goods and Services in Exchange for the Vehicle

Box 4c. Gross Proceeds

Described

If you checked box 4a, enter the gross proceeds from the sale

You must check the box to indicate whether you provided

of the vehicle. This is generally the sales price. Do not reduce

goods or services to the donor in exchange for the vehicle

this amount by any expenses or fees. Skip this box if the

described above.

qualified vehicle has a claimed value of $500 or less.

Box 6b. Value of Goods and Services Provided

Box 5a. Vehicle Will Not Be Transferred Before

in Exchange for the Vehicle Described

Completion of Material Improvements or

If you checked “Yes” in box 6a, complete box 6b. You must give

Significant Intervening Use

a good faith estimate of the value of those goods and services

If you intend to make a significant intervening use of or a

including intangible religious benefits. Include the value of any

material improvement to this vehicle, you must check box 5a to

goods and services you may provide in a year other than the

certify that the vehicle will not be transferred for cash, other

year that the qualified vehicle was donated. Pub. 561,

property, or services before completion of the use or

Determining the Value of Donated Property, provides guidance

improvement. Also complete box 5c. Skip this box if the

for providing an estimate for the value of goods and services.

qualified vehicle has a claimed value of $500 or less.

Box 6c. Description of the Goods and Services

To constitute significant intervening use, the organization

must actually use the vehicle to substantially further the

If you checked “Yes” in box 6a, describe in detail the goods and

organization’s regularly conducted activities, and the use must

services, including intangible religious benefits, that were

be significant, not incidental. Factors in determining whether a

provided to the donor. If the donor received only intangible

use is a significant intervening use include its nature, extent,

religious benefits, check the box.

frequency, and duration. For this purpose, use includes

An intangible religious benefit is one that is provided by an

providing transportation on a regular basis for a significant

organization organized exclusively for religious purposes and

period of time or significant use directly relating to training in

which generally is not sold in a commercial transaction outside

vehicle repair. Use does not include the use of a vehicle to

the donative context.

provide training in business skills, such as marketing or sales.

Examples of significant use include:

Box 7. Checkbox for a Vehicle With a Claimed

•

Driving a vehicle every day for 1 year to deliver meals to

Value of $500 or Less

needy individuals, if delivering meals is an activity regularly

conducted by the organization.

If the vehicle has a claimed value of $500 or less or the donor

•

Driving a vehicle for 10,000 miles over a 1-year period to

did not provide a taxpayer identification number, you must

deliver meals to needy individuals, if delivering meals is an

check box 7. If you check box 7, do not file Copy A with the

activity regularly conducted by the organization.

IRS and do not furnish Copy B to the donor.

1098-C-2

Instructions For Form 1098-C - 2006 Page 4

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