Individuals tend to donate their beloved boats to charitable organizations for many reasons. Some may want to get out from under the mounting expenses of owning a boat while also gaining a great tax deduction. Maybe, they over-invested and know the market might never repay them, so instead of swallowing a loss, they choose the altruistic route. No matter the reason, a boat donation will give the satisfaction of helping to support a cause they truly care about.
A boat donation is a great means for philanthropic giving, however, the process is not as simple as some may think. All boat donations must be done right with careful planning, research, and the excellent advice of a trusted tax professional. It is possible to turn that old boat into a beautiful gift that helps others without giving yourself the headache of a financial disappointment. Be sure to do your homework when choosing a charity. In order to qualify for a charitable tax deduction, the charity that you give your boat to must be an IRS-approved 501(c)(3) organization. You can check its status through IRS Publication 78.
In order to maximize the tax deduction you can take, you will want to claim the “fair market value” of your boat. This can best be determined by an appraisal from a certified marine surveyor. For boats with a value larger than $5,000, an appraisal is always mandatory. If the boat is sold by the charity in less than three years from the date of donation, your deduction will be dependent on the amount the charity received for the sale.
Charity Boats has an excellent reputation for working side by side with donors and taking their intentions for their boats seriously.
If the charities you usually support are unable to take on your boat donations, find a reputable one, like Charity Boats, that can. You can research charitable organizations through online sites such as Better Business Bureau and Charity Navigator.
When you have narrowed your choices down, take the time to learn more about the charity in terms of how your boat will fit in.