What’s the benefit?
In some cases, donating your boat may be a good option depending on the market and condition or age of the boat. Doing so may even come with an array of tax, financial, and personal benefits.
The IRS provides a couple of publications to help understand the process of donating property: Publication #526, Charitable Contributions and Publication #561, Determining the Value of Donated Property. In most cases, you may deduct an amount up to 50% of your adjusted gross income. If your contribution exceeds 50% of your gross income, you may deduct the excess in the five succeeding years until it’s used, a fantastic tax deduction.
The value of your boat must be determined by an expert boat appraiser or marine surveyor prior to donation. You may gradually deduct the fair market value at the time of the contribution.
Beyond the tax write-off, donating your vessel means saving on the expense of keeping your boat. From slip or mooring fees, insurance, maintenance, required repairs, etc., it is costly to keep a boat around. In addition, the commission fees to a yacht broker can add up, and in some cases, it makes more sense to donate your boat.
Many charities or organizations can benefit from boat donations. It’s a win-win. You get a great tax write-off and individuals who normally could not experience the wonderful boating lifestyle, get the opportunity.
Connect with us for further details and to get a valuation on your vessel.
Engel & Völkers Yachting
3636 E Coast Hwy | Corona Del Mar, CA 92625