The coastline of California goes on for miles, which means there are a lot of boats in this beautiful state. All along the coast, there are thousands of unused yachts sitting in Harbors and marinas in places like the Los Angeles Harbor, and the San Francisco Bay.
If you are one of the many California yacht owners and are seeking a way to get rid of your boat, a charitable California Yacht donation may be right for you. Yacht donations are a beautiful means of charitable giving, but the process may not be as simple as some may think. With some thorough planning, research, and advice of a trusted tax professional, you can be on your way to a great way to give back to the community.
The rewards are doubled. The tax deduction itself, in most situations, is more than what you could get for it than by outright selling it. Just make sure you do your homework when choosing a charity to donate to. To qualify for a charitable tax deduction, the charity you choose must be an IRS-approved 501(c)(3) organization, like Boats with Causes. You can always check a charity's status through IRS Publication 78. Your California yacht donation can be a tremendous blessing for many charities.
Keep in mind, to maximize the donation benefit you are able to receive, you will want to claim the FMV (fair market value) of your yacht. The FMV has to be determined by an appraisal from a certified marine surveyor. For vessels with values larger than $5,000, an appraisal is mandatory. In order to claim the FMV of your yacht, the IRS requires the vessel to be retained by the charity for “significant intervening use.” This means you will most likely want to know what your chosen charity’s intentions are for the yacht before you complete the donation.
Yacht Donation Benefits Laid Out
The benefits of donating your Yacht to charity are numerous:
- Tax-deductible
- The paperwork will be handled for you, including the charitable tax deduction forms.
- Immediate disposition of a yacht that is slow to sell and costly to maintain.
- You gain the satisfaction that comes from supporting those who are truly in need.
*Contact your tax advisor for more information on how to fully deduct your charitable boat donation.
Here are some quick faqs for a California yacht donation:
Do I need a title to donate my yacht in California?
Yes, regardless of the yacht, you will need a title for a yacht donation.
Do I need registration to donate my yacht?
Yes, you will need your registration to donate any kind of yacht.
I don’t have my title- how do I get a new one for my yacht?
Visit https://www.dmv.ca.gov/portal/dmv/detail/boatsinfo/boatreg to find out more information about getting a new title or registration for your boat in California.
Who can I contact about my title and registration?
The Department of Motor Vehicles is the agency where you can get your boat title and registration. You can contact the DMV of California by visiting http://apps.dmv.ca.gov/fo/offices/toc_fo.htm.
