Posts Tagged ‘Existing Mortgage’
Boat Donations Come in Two Flavors
Monday, September 15th, 2008
Boat Donations can be handled a couple of different ways, depending on your situation.
The classic approach is a simple straight donation — you sign your boat over to a marine charity such as Pacific Marine Foundation, and you can deduct the fair market value of your donation from your income taxes.
This is the approach you would use if your boat is free and clear of any loans or mortgages, unless you plan on paying it off prior to donation.
The second approach is called a “bargain sale” — you sign your boat over to the marine charity, but you also receive an agreed amount of cash, and you donate the remaining value, receiving a tax deduction on the donated amount.
The “bargain sale” is used in situations where there is an existing mortgage on a boat, or when the vessel is particularly valuable and attractive to the marine charity.
In both cases, whether a free and clear boat donation or a bargain sale, Pacific Marine Foundation takes over all expenses such as moorage, maintenance and insurance on receipt of a “Deed of Gift” and/or “Bill of Sale”.
Not sure which approach is best for you? Be sure to consult your accountant, and contact Pacific Marine Foundation to discuss your donation.
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