Boat Donation

mdzaltzman

New member
Joined
Jun 4, 2007
RO Number
26635
Messages
9
We're considering donating our boat for a tax deduction. Can you offer tips, advise, suggestions, cautions. How do we choose a reputable organization? What is the cost for an appraisal. Is one always necessary? Any info would be appreciated.

Thanks
Mark
 
If you want to donate just to be generous to a worthy organization, that's great and there are many reputable charities that would be happy to take your donation.

If you want to donate because you're having a hard time selling and you're hoping to make out good financially, you won't. Most charities auction off their donations and what they get (usually well below market value) is all you can deduct from taxes. Let's say your boat has a market value of $5000. When all is said and done, the charity will probably be lucky to get $3000 at auction, which means you can only take a $3000 tax deduction. If you are fortunate to be in a high income tax bracket, you will only see about $1000 in tax savings.

So bottom line, financially, you are better off having a fire sale on your boat and getting rid of it before you incur any more expenses.
 
I have surveyed many vessels just for this purpose. The 1st place I would check would be with your local USCG and see if they have a need for your vessel. The IRS will supply you with forms and expect a value and condition inspection performed to determan the true value of your boat. If your vessel is worth less then $5000.00. you may not need a survey performed.
 
Any organization which qualifies as a Non-Profit by the IRS qualifies; not all Non-Profits will accept your boat as a donation. What about the Sea Scouts?
 
Don't take this as gospel, but I believe it to be true:
We used to be able to claim "book value" (such as an NADA number) for cars.
Then the rules changed and we can only claim what the nonprofit sells it for.
But... My understandin is... if the nonprofit actually USES it for its intended purpose, THEN you can claim a book/NADA/survey number. If you consider this, please investigate and document carefully. It may be why Al said "...if they have a need..."
 
Back
Top