posted on July 6, 2001 08:30:55 AM new
Hi All- I just wanted to tell you a great thing..
My car died about a week ago, it was beyond hope...I had to get a new junker to thrift in, but my local Auto Wreckers wanted to charge me to take away the old one.
I called Salvation Army (where I buy most of my Ebay items..). They came and took my junker, gave me a tax deduction, and said "Thank You" to me! -Wow! I am so happy! That deduction will really help me out, and they say they will strip the car and make money themselves~ What a circle, I buy the junker to thrift, they sell the junker and give me a deduction! I use the deduction to help pay for more thrifting...Too cool!
posted on July 6, 2001 09:47:26 AM new
What a great thing to do, kyms!
We recently donated our car to a local charity for about the same reasons: it was in need of repairs costing more than the value of the car and I couldn't see selling it to someone and worrying about whether they made the repairs, which were safety related.
The charity either auctions the car (if it's newer and in good shape), or sells the parts. We got a receipt for a tax deduction and everyone is happy! I wasn't aware that the Salvation Army also does this.
posted on July 6, 2001 10:28:49 AM new
I am just curious as to how much of a deduction you intend to take on a car that was "dead"?
I'm glad you donated to salvation army, but was curious if they put a value on it for you, or if you have to do that, and if so, how you intend to do it?
Around here, working junkers go for $300-$500, and dead ones for, not surprisingly, much less, like maybe $25, the value of which as a tax deduction nets you a whopping $10 or so at tax time.
I donate continuously to our local SA, but I do it mostly for a sense of satisfaction, in that I probably just about break even financially in terms of time and money to donate junk to them.
Giving to SA is, truly, a "great thing", but not financially, as far as I can see. But if people have figured out how, financially, to make it more lucrative (while still being legal), I'd love to hear about it.
posted on July 6, 2001 11:53:27 AM new
I have no idea what kind of deduction it will be, that was hardly the point. I did not say I wanted to defraud anyone. I said that they will be able to STRIP the junker and make a good amount! I just had a new starter, gas tank, windshield and alternator(sp?) put in within the last year. I'd bet they make quite a bit off of it. If I get a $500.00 deduction (just a figure, I have no idea what it will actually be), isn't that better than PAYING someone to sell these new parts for their own profit? I think that getting a deduction is a fair trade for the hundreds of dollars I invested in brand new parts...Plus the Sal/Am makes a tidy profit...Plus, I have my Parking Spot back...To me, it sounds like good for all.
posted on July 6, 2001 12:14:34 PM new
I'm certainly not accusing you of fraud.
First, I was wondering if SA wrote an amount down for you. from your answer, I'd say no. I was just curious, since charities used to do that, but now I think its a no-no.
My point is just that the amount of the deduction is supposed to be the "fair market value", which is how much (theoretically) you could sell the car for now, as is (i.e., dead, and not taken apart and sold individually as parts, since that takes time and effort).
By saying you could take a $500 deduction (just using this figure from your last post) I'm thinking (if I understand the applicable rules) that means you could have immediately sold it to someone for $500 and pocketed the cash directly; instead now you will save approximately (depending on your tax bracket) $150 or so sometime in the future.
I was just correlating all of this to your statement that the deduction will "really help you out"..since it seems like selling it for $500 would really help you out more than taking it as a deduction?
Believe me, if SA wanted your car, i'm quite pleased you took the time and effort to donate it to them. AS I said, I donate regularly to SA. I just don't see much financial advantage in it, just the satisfaction of helping others. And, as you point it, its certainly better than paying someone to take the junk off your hands.
I'm just looking for some insight into how to make my donations to SA more profitable to me (which also gives me more incentive to help SA). So far, I'm not seeing it, at least in the kinds of stuff I tend to give away. Maybe if I had tens of thousands of dollars in appreciated stock certificates to donate there may be some tax advantage...but sadly I don't have to worry about that.
[ edited by captainkirk on Jul 6, 2001 12:15 PM ]
posted on July 6, 2001 12:24:45 PM new
i recall the last times i gave sa my old pc and clothes and furniture,they gave me a recipt of items received,it is up to you to enter the value.
of course IRS who has seen it all,would not agree if the taxpayer claims her old pc is worth 3000 dollars.
just use your own judgment ,how much is too much to raise IRS eyebrow!
posted on July 6, 2001 12:32:47 PM new
One problem looming is that most places won't take "old" PCs now. In our area, anything less than a Pentium w/cdrom and modem is trash.
Interestingly, our county landfill has started a program of accepting older PCs. They, too, strip and sell the parts (just as in the car example), but because there is less profit in a PC than a car, and because they properly dispose of any potential hazardous materials, we still have to pay a few bucks to get rid of it.
But I feel better than having industrial trash compacted and perhaps helping contaminate the ground.
posted on July 6, 2001 03:37:59 PM new
Our local Goodwill store has a used car lot now. They make minor repairs to donated autos and sell them.
If a car is unsafe or not repairable, they use the parts to repair others and junk the remainder to help fund the program.
The Ohio Works program (part of the program devised to replace welfare), will actually help people buy these so they have transportation to get or keep a job.
posted on July 6, 2001 03:55:07 PM new
Your heart is certainly in the right place and I applaud you for that BUT......the salvation army? YIKES!!
All of my donations go to the local Children's Home (they take care of hard to adopt children) or a local women's shelter.
These type of organizations really, really need donations to survive. Also, unlike religious organizations liked the salvation army, the presidents of these organizations are unpaid vounteers who don't drive around in a brand new Mercedes every year or live in a million dollar house.
