Yardley CPA Posted April 8, 2009 Report Share Posted April 8, 2009 I have a client who donated an auto to "Kars 4 Kids." Client brought me a copy of the Official Receipt that indicates Kars 4 Kids sold the auto at arms length to an unrelated party for $700. My questions: 1. How do you report this on Schedule A? Do you need to complete 8283 or is there another way to report this? There is a spot on the non-cash donation worksheet that references 1098 C. 2. Do I need to attach a copy of the Official Receipt to the return? How do I do that if I am Efiling? Thanks! Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 8, 2009 Report Share Posted April 8, 2009 If it's over $500, I fill out the 8283; which will e-file just fine. You do not need to attach a copy of the receipt. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted April 8, 2009 Author Report Share Posted April 8, 2009 If it's over $500, I fill out the 8283; which will e-file just fine. You do not need to attach a copy of the receipt. Thank you. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 8, 2009 Report Share Posted April 8, 2009 I have a client who donated an auto to "Kars 4 Kids." Client brought me a copy of the Official Receipt that indicates Kars 4 Kids sold the auto at arms length to an unrelated party for $700. My questions: 1. How do you report this on Schedule A? Do you need to complete 8283 or is there another way to report this? There is a spot on the non-cash donation worksheet that references 1098 C. 2. Do I need to attach a copy of the Official Receipt to the return? How do I do that if I am Efiling? Thanks! Are they itemizing? I find many non-profit agency that take cars as donation are not that clear when can someone take the deduction (Itemizing). My client donated a car and didn't get a benefit since he was not itemzing, so upset he called the agency to complain he was not able to deduct the donation, they told him, you should always check with your tax advisor, before making the decision LOL. From Sch A, go to non-cash donations, or add form 8283, you would need the date the car was purchased, cost and FMV of vehicle at time of donation. Quote Link to comment Share on other sites More sharing options...
cpabsd Posted April 8, 2009 Report Share Posted April 8, 2009 If you are e filing, you have to attach a copy of the receipt to the Form 8453 and mail it to the IRS within 3 days of acceptance. If you are not e filing, I assume you must attach the Form 1098-C or substitue form to the return. I just had a client of mine provide me with the letter from Kars 4 Kids and the letter states it is the sustitute for Form 1098-C. I believe this is new procedure for this filing year. I have done this on several clients. Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted April 8, 2009 Author Report Share Posted April 8, 2009 If you are e filing, you have to attach a copy of the receipt to the Form 8453 and mail it to the IRS within 3 days of acceptance. If you are not e filing, I assume you must attach the Form 1098-C or substitue form to the return. I just had a client of mine provide me with the letter from Kars 4 Kids and the letter states it is the sustitute for Form 1098-C. I believe this is new procedure for this filing year. I have done this on several clients. BSD, thanks for the 8453 info. Appreciate it. Client is eligible to itemize deductions, so they are able to take the donation. Quote Link to comment Share on other sites More sharing options...
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