icrnk

iTrader: (5)

I'm thinking it's time to let go of my 97 Mirage LS. It has served me well during it's 201,800 mile life but it's getting to where it's not worth the cost of keeping it going. The power windows (aftermarket) no longer work, the check engine light is on (I think it's throwing a transmission code). Odd thing is that the engine still feels strong, can easily go over 80mph on the freeway, still handles great. I guess the most pressing issue is that for the past few years I have had to get a tail pipe test to pass inspection as the computer test never completes. It always had some sensor show as "not ready." There were 2 or 3 of these sensors with the only one I remember being the O2 sensor. It doesn't smoke and always passed smog with the pipe test but my inspector told me that next year he won't be able to pass it with the pipe test because this car, being a 97, will have to pass the OBD test. My inspection will expire in March 09 and I don't want to spend money to get it to pass due to it's low market value ($1,200 ?) and really I need to get something with less miles to replace it as I don't want to take a chance of breaking down.

I was looking at donating to Purple Heart (http://www.purpleheartcars.org/) as I'd like something positive to come of my letting go of the car and was wondering if anyone has done this and what their experience was with the transaction as well as tax savings. thanks

beyonddc

I donated my Nissan Sentra to http://www.recycleforgold.org/ about 4 1/2 years ago.

During 2004, tax reduction from car donation is very easy. You donate your car, you get a receipt, you use Kelley Blue Book to get a price of your donated car then you use the Kelley Blue Book price as the actual value you donated when filing tax.

Now it sucks, at least for Massachusetts. The drill goes like this. You donate your car, you wait till you get a receipt from the place where you donated your car on how much the car actually sells and then use that for filing your tax.

icrnk

iTrader: (5)

Thanks for the information. I did see there is a waiting period to find out what the car was sold for and some other scenerios such as car being sold below value to a low income person (which you could claim the Blue Book value). I'll probably go ahead and do this early next year even though that means I'll have to wait until next year's taxes to claim. That will leave me with 2 cars of which I think I will sell the other as I really need a more child seat friendly car. Keeping my eyes on the Evo IX classifieds for some time next year.

otter

iTrader: (14)

I've done it in the past. One very very very important thing, before you donate a car, make sure you have enough tax deductibles to exceed the standard deduction on your tax return. When you do your deductions, you only get the larger of the two (standard deduction vs. itemized.) If you don't own a house or have some other source of large tax deductions, donating a car won't actually get you any money back.

IIRC, the standard deduction is somewhere around $5k if you're single, but I don't really remember for sure.

Donation laws vary by state. In Michigan, when you donate your car, they mail you a receipt and you use that for the deduction. You don't have to wait for the car to sell at auction, instead, you use the "fair market value" of the car when you donated it. I just printed off the KBB listing and tossed that into my filing cabinet, in case the IRS decided to audit me.

Finally, you won't actually get the full value of your donation back, only a percentage, and that percentage is an IRS secret Really, you donate a car for convenience or if it's in such bad shape there's no way you'd be able to sell it. If the car is in sellable shape, then just sell it.

icrnk

iTrader: (5)

I do own a home but I'll go ahead and get advice from a tax professional when I do taxes next year. I could sell it but don't really want to sell it with the Check Engine light on, no radio, non functional power windows, and the issue with OBDII inspection readiness. I just don't want to give someone else any headaches.

otter

iTrader: (14)

Then donating it is a good option. It's one step better than throwing it away.

Stuntfly02

Just use it on a trade in. SOOO many dealers just sell trade in cars at auction. Got 1k for my 98 Ford Contour with a blown transmission(4k to repair). So you never know what you can get.

icrnk

iTrader: (5)

That's an ideal. Just hate that this sometimes complicates the transaction. So I guess it's better to first settle on a buying price for the car and then say I have a trade in. Would two trade ins make this even more complicated?

I don't know that my second car would be a good candidate as it will probably be better to sell. It's a near stock 95 Acura Integra GSR. Only non-stock parts are the newly installed Koni Yellow shocks and Koni springs. The car has about 111,500 miles and had the original shocks so it was due for new ones. Also finally had to replace the stock clutch after it passed 100,000 miles so I had an Excedy Organic clutch installed along with a Act Street Lite Flywheel so those are non-stock as well. Other than that the car is excellent.

Oh yeah, other problem is I don't know if I want a new Evo. I really like the IX SE or MR mostly because they are lighter and have a bigger trunk. I have a kid so I need room to put in a stroller sometimes. The X does look so sexy though. Well, things to think of for next year.