Why donate a boat to charity you would ask? Well, there are actually a few reasons that make perfectly good sense for you to donate your boat to charity. For instances, the charity that receives the donation can use the donation on different ways. They may either use it for the charity itself, or they can sell and use the proceeds of the sale to further the purpose of the charity. Another reason might be that the maintenance on the boat is getting too much. Or simply you want to get rid of the boat, the easiest way, and still score a tax deduction.
Well, whatever your reason may be, you will not make a mistake donating your boat. However, there are a few things you need to take note of if you want to donate your boat for tax deduction purposes. Most of the rules for car donations apply to boat donations as well.
Like, determining the fair market value of the boat you are donating. The IRS advises people to check market guides which offer boats on sale. These guides will show you high and low values, all depending on the condition of the boat, and the equipment it contains. Another way is to consult a marine surveyor, who will determine the fair market value for you, and they will also be able to supply you with a certified appraisal when your donation is worth more than $5,000.
When the charity sells the boat you donated, you will be able to claim the full amount that the boat where sold for. However, if the charity decides to keep the boat and use it for the purpose of the cause, then you will be able to claim the fair market value. Charities that will keep boat donations are normally marine-based groups that does research and education on the water. So, if you have an expensive boat you may want to consider donating it to one of these charities that will use the boat for their work.
Also keep in mind that the charity organization must supply you with a receipt to acknowledge the charitable contribution as well as an acknowledgement of the sale and the price they got for the boat donation. This acknowledgement will have to be attached to your tax form when claiming your tax deduction. You will have to provide the charity with a Deed of Gift which includes a description of the boat. You must also transfer the title of the boat over to the charity when donating it.
When you make use of our services our professional team will help and lead you through the whole process of donating your boat to a charity of your choice.