Glad you asked...
When the American flag is no longer in good condition for display it should be disposed of in a dignified manner such as burning it. This is showing respect to our flag as we should always do. For more information on the American flag follow this link. http://www.law.cornell.edu/uscode/html/u...
Then again, this answer might help you...
To dispose of an American flag you must first remove the blue field and burn it in a peaceful manner. Collect the ashes and bury them. Now you can put the remainder out for disposal.

