my '89 CRX needs a new clutch and I'm having trouble justifying replacing the clutch to the tune of $750+ for such an old beater car. also, having two 2-seaters (S2000 + CRX) is fairly impractical. (I'm thinking of getting a newer used Camry)

I've heard that I can donate this car and get a pretty good tax write-off (like Blue Book value?!), despite the fact that it is not exactly in pristine condition. it's a beater-- a little beat up, but gets me reliably to and from work, or anywhere else local. is it true about getting close to Blue Book when donating? joeking... I remember you mentioning donating cars for insurance purposes a while back. your financial input/advice is always appreciated.

but the thing is, I've spent some money in the last 2 years on repairs so there are a fair number of new and almost components under the hood and such; new master brake cylinder (July '04), new rear drum brakes(July '04), new battery (July '04), new alternator (Jan '03 I think), new spark plug wires(Jan '03), new radiator, new timing belt and water pump, and new catalytic converter... probably more, but I can't remember it all. I intended to keep this car for a while-- engine components very well maintained-- since it's so perfect for commuting and parking and such, but really, it's practicality just ain't cutting it anymore. I need a 4-seater. and the notion of spending $750 to replace the clutch on a car that has to be worth under $2K doesn't sit well either.

I do know that the CRX is a pretty popular car these days since it gets great gas mileage and still looks good for a design a 16+ yr old design, but I'm not sure about my legal obligations to fix the clutch before selling it since it can arguably be not road worthy-- if you accelerate moderately hard, it'll start to slip. I don't want to sell it then have the guy come back at me later and exercise some legal mumbo-jumbo forcing me to have the clutch replaced. of course, I'm completely ignorant regarding my caveat emptor rights as well.

so anyone who has experience donating cars, any recommendations? or do you guys think I should sell it?

also, I'm curious if anybody knows who benefits and how with all these donated cars? I hear they accept them, running or not?



p.s.-- Bay Area CRX peoples, IF I end up donating the car, I'm more than happy to trade my fairly new battery for your much older battery + a few bucks. also have some good condition Polk 6.5" speakers all around (4), willing to trade for the OEMs + a few bucks. (or maybe I can just remove and sell the speakers altogether-- dunno the rules regarding donated cars if they have to have a functioning stereo). got a Blaupunkt Munchen too that has seen it's share of wear. PM me with any questions or offers. I have receipts for everything.

 

donate that shit to me.

 

If you decide to donate do it this year. The tax laws change in 05. You can take blue book this year. Next year you only get to take actual auction price (this is where most donated vehicle wind up) or $500 which ever is greater.

 

holy sh*t, thanks for the heads up!

 

donate it now.

 

yes... exactly! Pull any extra commodities off... anything of which is not required for the vehicle to run- (ie- stereo)... swap anything that you feel you can still get value out of... and donate it.

The car does not have to be in our standard of "running condition". Technically- if it starts- most charity's consider that "running"- so use your discretions. Regardless- as long as it is "running" you will get blue book. (then again- I've had 2 cars that wouldn't start that recieved blue book, but I think that was up to the charity- they just didnt' seem to care).

 

I'm sure you understand how this works on your taxes, but just so that everyone is clear, you only get to take the donation as a deduction. So if you are in the %30 tax bracket, you will essentially be getting %30 of Blue Book back when tax time comes around. Therefore, if you think you can get more then %30 of blue book selling it, it's probably better to sell it unless the deduction is going to move you down a tax bracket or something.

As for who benefits from the donation, the charity obviously gets free money from the auction, and the government gets to help an organization by basically paying you %30 of the value of the car.

 

if you donate .. i dont think u get back all of the money .. i think it's jus a percentage of what it says in the blue book

 

thanks Joeking, Riceburner.

Joeking-- I'm gonna take your advice and sell all the aftermarket components.

Riceburner-- actually I appreciate your spelling that out because I was confused as to how much of the KBB value I got as tax credit. so apparently what you get as credit is what the IRS would've taken from you as if the sale amount was capital gains? (confusing, since the purchaser typically pays the sales tax) but your explanation cleared it up for me. thank you! (on the IRS site, they list whether the charity has a 30% deductability or 50% deductability limitation, and I erroneously took that to mean that I got either 30% or 50% of the blue book back. in fact, it is a limit of the maximum amount one can donate as a percentage of your annual gross income. fyi)

well, I've pretty much decided to donate it, and I've been doing some research online as well. for everyone's reference who are thinking of doing the same, here's a good article I found:
http://www.spokane.bbb.org/alerts/alerts.h...=423&newstype=4

here's the IRS official list of charities to whom you can donate:
http://www.irs.gov/charities/page/0,,id=15053,00.html

here's more info regarding charitable donations:
http://www.irs.gov/charities/article...119392,00.html

Human Rights Watch isn't on the list (my favorite charity), but the SPCA of SF is, so I might consider them.

 

sorry to hijack the thread, but on the IRS website which tritium provided (thanks!) it says something like this:

Organization Name: Dorothy Brown School Inc.
City: Los Angeles, CA
Code: None - A public charity with a 50% deductibility limitation.

What does that 50% mean?