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Determining FMV. A used car guide may be a good
<br />starting point for finding the FMV of your vehicle. These
<br />guides, published by commercial firms and trade
<br />organizations, contain vehicle sale prices for recent
<br />model years. The guides are sometimes available from
<br />public libraries or from a loan officer at a bank, credit
<br />union, or finance company. You can also find used car
<br />pricing information on the Internet.
<br />An acceptable measure of the FMV of a donated
<br />vehicle is an amount not in excess of the price listed in a
<br />used vehicle pricing guide for a private party sale of a
<br />similar vehicle. However, the FMV may be less than that
<br />amount if the vehicle has engine trouble, body damage,
<br />high mileage, or any type of excessive wear. The FMV of
<br />a donated vehicle is the same as the price listed in a
<br />used vehicle pricing guide for a private party sale only if
<br />the guide lists a sales price for a vehicle that is the same
<br />make, model, and year, sold in the same area, in the
<br />same condition, with the same or similar options or
<br />accessories, and with the same or similar warranties as
<br />the donated vehicle.
<br />Example. Neal donates his 1982 DeLorean DMC -12,
<br />which he bought new for $25,000. A used vehicle pricing
<br />guide shows the FMV for his car is $9,950. Neal receives
<br />a Form 1098 -C showing the car was sold for $7,000.
<br />Neal can deduct $7,000 and must attach Form 1098 -C to
<br />his return.
<br />More information. For details, see Pub. 526 or Notice
<br />2005 -44. Notice 2005 -44, 2005 -25 I.R.B. 1287, is
<br />available at www.irs.gov /irb /2005 -25 /RB /ar09.html.
<br />Additional Information
<br />You may want to see Pub. 526 and Pub. 561. If you
<br />contributed depreciable property, see Pub. 544, Sales
<br />and Other Disposition of Assets.
<br />Specific Instructions
<br />Identifying number. Individuals must enter their social
<br />security number. All other filers should enter their
<br />employer identification number.
<br />Section A
<br />Part I, Information on Donated Property
<br />Line 1
<br />Column (b). Describe the property in sufficient detail.
<br />The greater the value of the property, the more detail you
<br />must provide. For example, a personal computer should
<br />be described in more detail than pots and pans. For a
<br />vehicle, give the year, make, model, condition, and
<br />mileage at the time of the donation (for example, "1963
<br />Studebaker Lark, fair condition,135,000 miles "). If you do
<br />not know the actual mileage, use a good faith estimate
<br />based on car repair records or similar evidence.
<br />For securities, include the following:
<br />O Name of the issuer,
<br />O Kind of security,
<br />O Whether a share of a mutual fund, and
<br />e Whether regularly traded on a stock exchange or in an
<br />over - the - counter market.
<br />Note. If the amount you claimed as a deduction for the
<br />item is $500 or less, you do not have to complete
<br />columns (d), (e), and (f).
<br />-4-
<br />Column (d). Enter the approximate date you acquired
<br />the property. If it was created, produced, or manufactured
<br />by or for you, enter the date it was substantially
<br />completed.
<br />Column (e). State how you acquired the property. This
<br />could be by purchase, gift, inheritance, or exchange.
<br />Column (f). Do not complete this column for property
<br />held at least 12 months or publicly traded securities.
<br />Keep records on cost or other basis,
<br />Note. If you have reasonable cause for not providing the
<br />information in columns (d) and (f), attach an explanation.
<br />Column (g). Enter the FMV of the property on the date
<br />you donated it. You must attach a statement if:
<br />® You were required to reduce the FMV to figure the
<br />amount of your deduction, or
<br />O You gave a qualified conservation contribution.
<br />See Fair Market Value (FMV) beginning on page 2 for the
<br />type of statement to attach.
<br />Column (h). Enter the method(s) you used to determine
<br />the FMV.
<br />Examples of entries to make include "Appraisal,"
<br />"Thrift shop value" (for clothing or household items),
<br />"Catalog" (for stamp or coin collections), or "Comparable
<br />sales" (for real estate and other kinds of assets). See
<br />Pub. 561.
<br />Part II, Partial Interests and Restricted Use
<br />Property
<br />If Part II applies to more than one property, attach a
<br />separate statement. Give the required information for
<br />each property separately. Identify which property listed in
<br />Part I the information relates to.
<br />Lines 2a Through 2e
<br />Complete lines 2a -2e only if you contributed less than
<br />the entire interest in the donated property during the tax
<br />year. On line 2b, enter the amount claimed as a
<br />deduction for this tax year and in any prior tax years for
<br />gifts of a partial interest in the same property.
<br />Lines 3a Through 3c
<br />Complete lines 3a -3c only if you attached restrictions to
<br />the right to the income, use, or disposition of the donated
<br />property. An example of a "restricted use" is furniture that
<br />you gave only to be used in the reading room of an
<br />organization's library. Attach a statement explaining (1)
<br />the terms of any agreement or understanding regarding
<br />the restriction, and (2) whether the property is designated
<br />for a particular use.
<br />Section B
<br />Part I, Information on Donated Property
<br />You must get a written appraisal from a qualified
<br />appraiser before completing Part I. However, see the
<br />Exceptions below.
<br />Generally, you do not need to attach the appraisals to
<br />your return but you should keep them for your records.
<br />But see Art valued at $20,000 or more, Clothing and
<br />household items not in good used condition, Easements
<br />on buildings in historic districts, and Deduction of more
<br />than $500,000 on page 5.
<br />Exceptions. You do not need a written appraisal if the
<br />property is:
<br />1. Nonpublicly traded stock of $10,000 or less,
<br />
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