How to tax deduct or get cash for your junk cars

kgrubbs — Sun, 30 Nov 2008 06:55:52 +0000

Have you ever had a car it seemed like you were putting money into it for what seemed like every week of your life? You know the one, you’ve starting referring to it as ‘the ol’ money pit’ when you’re around friends. In this article I’ll cover a couple of ways that can help you re-coupe some of that money. Here are some helpful ideas to dispose of your car and resources to use for making a little cash. With the end of the year closing in and the economy in the rough, the idea would be to cash in, not to pay out.

Over the last few months, I’ve noticed a ton of 25-30 year old cars coming out of the wood work. I guess everyone’s grandparents have decided to let go of their Chevy Citations and Pontiac Catalinas.

Donate to Charity

One way to get rid of an old car and get a tax deduction would be to donate your car to charity. There are lots of places to call that would be glad to take an old car running or dead.

Step One

Before handing over your car to just any charity, review the IRS.gov website for helpful information about donating your vehicle.

Step Two

The next step would be to find the value of your car. Check out the Kelley Blue Book.com website to find the value of your vehicle. When trying to find the value of your car, use the private party section of Kelley blue book to get the value that the IRS recommends. If possible, make sure to print a copy for your records of the tax deduction value.

Step Three

Check out the charitywatch.org website for helpful information with planning your deduction.

Here is an organization called donationline.com that has an extremely large group of charities to choose from.

List of helpful Charities

Here are a few other ideas that you can try.

Scrap metal/Recycle

Next would be to scrap the car to your local scrap metal recycle company or a salvage yard.
When checking this method, always call for current scrap metal pricing. Depending on the economy, the price of scrap metal could fluctuate as much as gas prices. One of my favorite places is Pull-a-Part.com. They will pay cash for your car. Just push, pull, or drag it onto the weigh in scales and cash out. Scrapping your car this way is one of the quickest ways to rid yourself of that old money pit. Unlike a tax deduction where you wait until next year, the cash is in hand the moment you give them the title.

Example of pay out

Scrap metal is paid by the ton. Assume that your old rusted out junk Cadillac weighs around 5200 pounds. A good price now could be around $120 per ton. This could bring in around $620 cash. Be sure to call for current pricing in your area before making the trip there. If the prices are low, wait until they fluctuate up to cash in.

Recycling oil, batteries, and scrap metal

kgrubbs — Sat, 25 Oct 2008 04:27:12 +0000

One thing that most people don’t think about when constantly working on cars is, there always seems to be a collection of old parts after a job is finished. What do you do with old brake rotors? How do you dispose of old engine oil or car batteries. Learn how to be environmentally friendly and recycle old car parts.

Hazardous Waste

Old oil of any type is considered hazardous waste. From engine oil to transmission fluid. Power steering and brake fluid are also hazardous waste. These oils can wipe out plant life if poured into the ground and possibly seep into ground water or wells that could kill off wild life or be consumed by people. Never dump or burn these chemicals. Learn to recycle and be environmentally friendly. Some states have done studies on prolonged exposure to these waste oils and found cancer causing chemicals in them. Avoid storing and handling hazardous waste with out protection and keep pets and children away from these chemicals at all times.

Oil and Car Batteries

If you took the time to research or call around in your community you might be surprised at how many places would take your old/used oil or junk car batteries. The only thing you might run into would be a hand full of people not knowing company policy’s on recycling and you might get denied on your efforts to recycle.

The best source I can give you is the national parts chain Auto Zone. Their website encourages people to recycle waste oil and old car batteries.

Scrap Metal

There are plenty of places in Indianapolis that you could take scrap metal to for recycling. Not all of them are walk in/open to the public places. But calling in the Indianapolis area.
you can locate one close to you.

I recently visited Farnsworth Metal Recycling to take a pile of old brake rotors and drums for recycling and was able to make a few extra dollars and get in and out in no time.

Community Awareness

Indianapolis is a city that works very hard at recycling and putting together programs for people to be more aware about their environment. With a little research from any where in the country where ever you live you can help your community by recycling.

Auto Repair Facts » Recycling