Thinking about selling or donating your boat? Consider these 4 thoughts on donating it.
Published: Wednesday, October 8, 2014
You receive a tax deduction equal to the fair market value of the vehicle. The IRS guidelines currently determine that value is equivalent to the gross proceeds from the sale of said vehicle if the sale of said vehicle is greater than $500. When you donate your boat you will reduce your tax liability which may allow for you to receive money back when you file your taxes. The two guides linked at the right produced by the IRS may be helpful in understanding the IRS Guidelines. When considering a donation agency it is important for you the donor that the agency does their work to get the most out of the sale of your vessel.
You can know that you are lending a helping hand to someone else through your donated vessel. We live in a world that is not always kind and many people struggle from day to day just to survive. When you donate your boat to a reputable agency you are taking a stand with organizations that care about the human need. Your donation is helping to care for children and families facing very challenging circumstances as they receive help in areas unique to their crisis.
You can free up necessary space and time so you can utilize your resources for other viable things. Boats are a great recreational resource but they are also very costly to own and require a lot of maintenance and upkeep. For some there comes a point that you realize you need to free up space and your time to focus on other important things in your life. When you donate your boat you save money that can be redirected toward other worthwhile endeavors. A reputable agency will alleviate you of as much cost in the donation process as is possible (for instance covering insurance and storage costs if possible).
You can maximize your donation value and time by deciding to donate early. Often times we pick up boats that have not been used for a few years or by donors who wanted to try to sell it and have become frustrated with that process. Unfortunately the longer a boat sits unused the more the value decreases over time. Donating your boat early gives the receiving agency the greatest potential to maximize its donated value. Sometimes donors have had their boats listed with a broker who has not been able to sell their vessel, all the while the donor has continued to pay storage and maintenance fees. When you donate to your boat some agencies will assume the responsibility for all fees associated with the vessel moving forward from the date of donation.