Article category: Home Care, Senior Care, Eldercare, In-Home Care, Caregivers.
Eldercare Tip — What To Do With Your Aging Loved Ones’ Junk Car?
The spring is around the corner. The snow has melted, and as it did, the junk car that has been parked to the side of the property has become exposed again. The car does not run; it cannot be handed over to grandchildren who are learning how to drive. The book value of the car is next to nothing. Your aging parents do not want to spend a small fortune repairing it. It’s time to remove it from the property, but what is the best way to accomplish that?
Do We Donate It, or Do We Get Cash?
When listening to radio or watching television, we all hear ads for donating and/or getting cash for your car. What are the differences and how they impact your aging loved ones? Let us consider the advantages and disadvantages of both options. Whichever option you will help your aging mom and dad choose, you will all feel better that the junk is off the property.
Advantages of Donating It
Here are some advantages of donating the junk car to a local charity or a non-profit organization:
- You may feel good about making a charitable contribution,
- If the charity has a 501 (c) 3 status and provides you with a donation receipt, you may be able to potentially claim tax deductions. There is a difference between non-profit and not-for-profit organizations. Do you aging loved ones even need a tax deduction? Check with the charity and consult mom’s CPA,
- The charity of your choice should be responsible for towing the junk car away from your property at no cost to the donor, but please double check with them.
Disadvantages of Donating it
Donating mom and dad’s old car is not as easy as it sounds:
- There are plenty of scams that you have to sift through to make a wise decision,
- Aside from only a potential tax deduction, there are no financial benefits,
- Paperwork and consultations with CPA eat up time and money,
- The towing company often gets the lion share of the value of your donation.
Advantages of Getting Cash For Junk
Choosing the Cash For Junk option will require some leg work as well, and offer the following benefits:
- Some cash in hand. The cash value is almost always lesser than donation value, but on the other hand, mom and dad may not even be able to use the tax deduction. As the old saying goes: cash is king,
- Possibly less paperwork than a tax-deductible option offers,
- No need to consult with a CPA,
- A possibility of having the junk yard pay the towing costs.
Disadvantages of Going with the Cash Option
There are some disadvantages of the cash option:
- Giving up the possibility of a tax deduction,
- You may be responsible for towing costs between $75 to $250.
Before Making the Final Decision
Before making any decisions, it is best to gather as much information as possible. Plenty of information is available online. Here is what info you will need to help mom and dad make a decision that reflects their best interest:
- Click here to establish and compare the book value of a junk car on kbb.com, cars.com, NADAguides.com, edmunds.com, AutoTrader.com, CarFax.com.
- Click here to check the 501 (c) 3 status of a charity by using IRS’s EO (Exempt Organizations) Select Check Tool,
- Use the Internet to locate and call local “junk yard”, “salvage yard”, “auto wreckers”, “auto recyclers”, to ascertain cash value of the vehicle,
- Consult with a CPA if mom and dad could even benefit financially from a tax-deductible donation receipt.
The good thing is that whichever option you will help your aging loved ones choose, you are all going to be pleased with the junk being cleared off the property.
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With ❤︎ for the Elderly…
Article topic: Home Care, Senior Care, Eldercare, In-Home Care, Caregivers.