Vehcile Donation Question

[northernlights]

Hello,

One of my clients donated a vehicle to a charity in 2010. They gave him a form (not a 1099 C) that states the specs of the vehicle as well as the fair market value. This charity also marked on the form that the plan to sell the vehicle for the hgihtest possible amount to use in their ministry. As of this date the vehicle hasn't sold.

My question, can the taxpayer take the deduction if the charity hasn't sold the vehilcle yet? I'm not sure I understand right, but I think the rule says they have to take the lower of FMV or the sale price as a deduction am I correct?

Any help would be appreciated.

Thanks

[Possi]

No 1099C

If there is no 1099C the limit is $500.

Welcome to the board!

[Gary2]

It would be a 1098-C. There's nothing charitable about a 1099-C.

If it's expected to sell for more than $500, then Pub. 526 has two suggestions: Either file for an extension, or file without it and amend later. Since they don't suggest filing $500 now and amending to the actual value later, I'd avoid that path.

[Burke]

I agree. IRS will accept a letter from the charity which contains all the necessary specifics in lieu of 1098-C. However, Gary2 is correct. Forego deduction, and amend later when information is available to put on return since they stated that it would be sold.

[northernlights]

Thanks for your help. Sorry for causing confusion by calling it a 1099 C instead of 1098 C. I was meaning a 1098 C.

I thought I understood the same as the Gary2 & Burke but I just wanted to make sure.

Thanks again!