Donee acknowledgments of motor vehicle, boat, and airplane contributions

Article Provided By Levine, Katz, Nannis + Solomon, P.C., www.lknscpa.com

The IRS has issued Form 1098-C for purposes of reporting donations of a Motor Vehicle, Boat or Airplane valued at more than $ 500. While an organization need not use the form, in the event of such a donation, the organization is obligated to issue a contemporaneous written acknowledgment to the donor, which must contain the information that would be provided, had the Form 1098-C been prepared. Should the organization choose to utilize Form 1098-C to fulfill its filing obligations, the donor is to be provided copies B and C of the form. Copy A is to be filed with the IRS no later than February 28, 2006 (March 31, 2006, if filed electronically.