Donate or Junkyard?

[Spooner]

I have an old car that's in running but bad shape that I don't want to deal with trying to sell. Should I donate it to get the tax writeoff or give it to a junkyard and get money for scrap metal or whatever?

Which is a better gain?

 

[HiTek21]

Donate, you'll probably get more.

 

[Atomicus]

Salvation Army & you get a tax right-off :thumbsup:

 

[Spooner]

but i dont really understand how the whole tax writeoff thing works

how much can typically be gained from that?

 

[b0mbrman]

I wonder the same thing...If I donate a car w/a KBB of $X, what should I expect to save on taxes?

 

[GroundZero]

Originally posted by: Spooner
but i dont really understand how the whole tax writeoff thing works

how much can typically be gained from that?

you get a tax gredit of fair market value/blue book value if you donate.
remember you most likely have to file an itemized return to get the break. no 1040's

 

[EagleKeeper]

If you already file itemizations, then figure the value of the donation will end up being about 25% of the "donated" value.

This value can be determined to be what the current value is on the wholesale market. To prove the value, keep a printout of the Kelly Blue Book Retail price.

Determine if the junk-yard can provide you with more than the 25% in cash than what the deduction would be.

If you do not itemize, then the donation will only provide a warm fuzzy.

 

[b0mbrman]

Originally posted by: EagleKeeper
If you already file itemizations, then figure the value of the donation will end up being about 25% of the "donated" value.

This value can be determined to be what the current value is on the wholesale market. To prove the value, keep a printout of the Kelly Blue Book Retail price.

Determine if the junk-yard can provide you with more than the 25% in cash than what the deduction would be.

If you do not itemize, then the donation will only provide a warm fuzzy.

Oh wow, just 25%? This may be less worth it than I thought...except, I suppose, that some poor kids will be better off than if I sell it privately.