I’ve managed to earn some significant money this year to the point where I’m seriously considering slagging off my hopeless 1965 Mustang coupe project car and giving the boot to my decrepit 1981 Volvo in favor of getting a Volvo in better condition.
Are their any special strategies when doing this sort of thing? Can you only donate one car a year or somesuch delimiting factor like that? Are there ways to maximize the value of the vehicle prior to sale? Do certain organizations tend to give you full bluebook more often? I suppose I will have to use the long form when I file. Are there other special documents or filing techniques I will need to employ?
http://boards.straightdope.com/sdmb/showthread.php?threadid=75389
I donated my car earlier this year, it was pretty simple. It took a couple of days of research and asking around. Some charities have to pay for repairs on the car, others get the work done for free from freindly mechanics. Drop me an email if you have any specific questions, or check out the link from when I asked this. I got lots of good replies.
Just to add - I donated my car to the American Lung Association, which gave me a wonderfully high bluebook value. I’d picked them only because my grandmother loved the ALA (my grandfather died of emphysema) and had given me the car when she couldn’t drive anymore.
One thing to consider: can these cars still be driven? Different organizations have different rules on whether and how they accept tow-aways. The NYC regional ALA would take my tow-away, but not from a parking garage. Fortunately, I still had just enough of a transmission left to baby the thing to an outdoor lot, where the ALA picked it up a day or two later.
Above is a good link, with useful information on to donate your car and deduct the value.
One thing of note, no matter what the charity tells you, you are not automatically allowed to deduct full blue book value of your car. You can deduct the fair market value (what you can sell it for) only. You can’t try to claim a $2000 deduction for a car that needs $3000 worth of repairs just to make it run. Obviously, your cars aren’t in that condition, but some charities mislead people about the deducation they are allowed to take.
Also, if the fair market value of the car is more then $5000 you need to get it appraised before you donate it.
You can donate as many cars a year as you like. You might want to speak to your accountant first to make sure that you will get the full benefit of the deductions.
Do you need a smog check before giving it to charity?
You might note that in California, the state gives you $1000 for your car if it doesn’t make smog & you don’t want it anymore…the rules should be at the smogcheck California web site. Think about it, you give it to charity, they have it tested, they get 1000 bucks or whatever it is. Wouldn’t you rather have that money yourself ?
I think it’s only $500 (unless it recently went up). My husband did this last year with an old Datsun. The car has to be in running condition. (They make you start it, then back it up and pull forward again.) Then they crush it into a cube. They’re paying you to get a polluting vehicle off the roads, which is why they both check to make sure it runs, and then insure it will never run again. This was a pretty good deal for my husband, since I think he only paid $100 for the truck, put less than $400 into it, and drove it for around 4 years before it started to be too much work.
I got a smog check recently, its $1000. I dont know if they say up to 1000 or just 1000 bucks. ALso, in Calif, if you can’t afford to get your car smogged the state pays up to $500 & you pay $20 of it. Its written right on the wall of the smog station.