If a church or ministry receives an auto or other vehicle and the claimed value is greater than $500, there are different filing requirements than discussed in the previous post. You still need all the donor and vehicle information listed previously, however the additional documentation is more complicated.
You must certify if any goods or services were provided in exchange for the vehicle and the related value if any. On Form 1098-C, there is a checkbox 6c to certify that the goods and services consisted solely of intangible religious benefits. All form copies (A, B, and C) must be completed.
If you sell, rather than use the vehicle, you must report the date of sale, gross proceeds, and certify the sale was an “arms length transaction to an unrelated party.” The donor’s deductible amount may not exceed the gross proceeds of the sale. Do not check box 7 or your donor will be limited to a $500 donation. Copies B and C must be supplied to the donor within 30 days of the sale.
If there is an intervening use by the church or ministry, or a material improvement to the vehicle prior to the sale, there are additional requirements. If you need help with these forms, please contact us.
