February 26, 2004Automobile Donation CallHi, I saw your number on the Internet and I'd like to get some information about automobile donation." What's the make and year of your automobile, sir?" the attendant asked. "It's a four-door 1992 Honda Civic," I replied. "What state are you in?" she asked. "New Jersey," I answered. "Okay, I can send out a packet for you," she replied. "Just fill it out and have it ready for the driver when he picks the car up." "Wait a minute. I just want some information about donating my automobile. It has approximately 185,000 miles," I said. "Is that too many miles for a donation?" "No, not at all," she replied. "So how much can I claim on my taxes for the donation?" I asked. "If you think the value of the automobile you donate is over $5000, we have to send out an appraiser," she answered. "But if you feel it's worth less, the IRS will accept that." "The IRS will accept that? I'm not sure I understand. But I don't think it's worth $5000," I said. "It has a bunch of dings, loads of nicks, and a little rust behind the passenger side rear wheel well ... and oh yeah, its not running right now. Is that okay? Can I donate a sad-looking car that's not running?" "Sure thing, sir," she replied. "So they'll just come here and pick it up and take it away with a flatbed truck?" I asked. "Yes, sir," she answered. "They'll just come and pick it up." "Wow. Okay, let me get back to you." - click - Let me just say, that I am even more skeptical about automobile donation today than I was at the start of the week. I've read that most of these automobile donation operations are run by user car dealers. I've read that a tiny amount of the value of the car actually goes to the charity (as low as 10%). And I've also read that the IRS has some very specific rules about the process. If you think that donating an old car is a good way to ease your taxes and could help you get a handle on debt consolidation, be warned. If you're thinking about donating your automobile to charity, be sure to check out the firm that handles the donation. And be sure to check those IRS rules, too! |
