How to tax deduct or get cash for your junk cars

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.

• Start with your local church
• Goodwill.org
• National Kidney Foundation.org
• donateacar.com

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.