Contact UsDonor donates classic car to charity. Charity uses third party company to liquidate the car. Third party company sells car for $61K and takes a fee of $12K and net to charity is $48K. What amount does charity report on form 8282 ($48K or $61K)?
Charity never took possession of car. Third party picked up car, had title transferred to their company, and sold car. Third party company issued 1098-C to donor. Charity is listed on the 8283 prepared by donor's CPA and the amount listed on the 8283 is gross sales proceeds of $61K. Charity received a check from the third party company for $48K. When charity files 8282, they are supposed to give a date property was received and sold, and they have to report the amount received upon disposition. Car sold for $61K by third party and charity received $48K.
