CBS Radio (KNX Los Angeles) Complaint - Automobile Donations

Review by on 2001-12-04
LOS ANGELES, CALIFORNIA -- There are many solicitations each day to contribute one's auto to a charitable institution. While I have no general objection to this, one particular 'selling point' is quite misleading. It is stated that 'you will often receive more than you would by selling the car'. The fact is that one receives nothing but a tax deduction. Even this is only true if the taxpayer itemizes deductions. Assuming he does itemize, the gain is only an amount based on his tax bracket. For example if the deduction is $1000 and the taspayer is in the 15% bracket, his net gain from the contribution would be $150 - not $1000!

To help keep me as a potential future customer, I would like the following:

Remove the misleading statement from the solicitation.

At the very least I would like a response from your company regarding this incident. Thank you for your time.
Comments:1 Replies - Latest reply on 2002-02-04
Posted by Anonymous on 2002-02-04:
Very true. When you deduct something, the money back is only the percentage of the tax paid on the value. In other words, donating a $1000 car means you can write off $1000 from gross income. Income tax on that would be 25% to 45%. So depending on your bracket, thats $250 to $450. Sure it saves the hassle of selling it and importantly, you help the needy, but do it to offer help. You won't make money in self interest.

Your Name:
(displayed with your comment)
Your E-mail:

Your Experience/Advice:
Check spelling

By clicking submit you agree that you have read and accept the Terms of Service & Privacy Policy.

Note: All comments are reviewed by a moderator before being published. Please be sure to read our guidelines before commenting.