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hamiam 04-26-2006 12:16 AM

Boat donation, bargain sale, tax treatment, etc
After many years and many, many thousands of dollars I am going to give up on my beloved 35' sailboat and, someday, get a daysailor. I understand the tax law has changed and you can no longer deduct the fair market value of your donated boat, just whatever the charity eventually sells the boat for. Does a bargain sale circumvent this problem? What if I donate her to an organization that would fix her up and actually sail her? Can anyone suggest such an organization? I boat is located in East Hampton, NY. Thanks.

sailingdog 04-26-2006 12:33 AM

If you're really interested in getting a tax write off for your boat...sell it and donate the proceeds... that will give you a much bigger tax write off than donating the charity will probably not get much for it. Also, many of the organizations that ask you to donate a boat/car/rv will take a majority of the money from the sale as part of their operating costs... few of the donate a vehicle charities are actually run by the charity in question, and little of the actual proceeds goes to actually helping the charity.

There are several organizations that would fix her and sail her, but most are fairly particular about what boats they do this with. It would help if you said what the particular 35' is.

murkehaze 04-26-2006 03:18 AM

There are a couple of charities in Australia that use sailboats as a mission outreach tool to the pacific islands. I don't know about tax situation!

sailingfool 04-26-2006 09:17 AM

54 Attachment(s)
The boat donation scam was not based on a tax deduction of fair market value, but on deducting the equivalent of the blue book value. The fair market value would reflect what someone would pay for that particluar boat, reflecting its condition - generally speaking if the fair market value was more than 50% of the blue book, the owner have a financial inventive to sell the boat, as other owners do. Let's be frank - most boats were donated because the tax savings from claiming the blue book value as a charitable deduction was greater than what the boat could be sold for.
A charity can no more find a profit from upgrading a distressed boat than you or I can - the cost of professional repairs is such that a seller can't get it back in a sale. The one exception to this rule is can be if the owner does his/herr own work and ignores or discounts the value of their time. My guideline (and expectation) is anticipate about 50% return at best on upgrades. This is just the way it works, unfortunately.

If you have a distressed boat, my advice is to list it on eBay. Ebay seems to pull the bargain hunters who think a below market price equals opportunity, rather than a big red flag.

Good luck.

stagew8t 04-26-2006 01:15 PM

I have a very happy home for your boat
I work for a non profit sailing association here in NYC and we'd love to make your boat a happy home right here in the city!

We'd sail her, not sell her.

Please contact me so we can work out details:

Mark W

hamiam 04-27-2006 06:39 PM

She is a Nicholson 345 built in 1987 with extensive upgrades and a newer (2001 or 2002) engine damaged by the negligence of a yard mechanic.

Faster 04-27-2006 07:21 PM

Nich 345
Hamiam - if she's an '87 she must be built by Fast yachts in Brazil - Nicholson sold the molds in the early 80s. Not a bad thing - We own probably the only Fast 345 on the west coast (Canada) and love her!

hamiam 04-27-2006 11:30 PM

She is Fast-built boat. I love mine as well but my live circumstances have changed and its time to pass her on to new owners who can enjoy her more and more often than I can. My wife is not a big sailor so she will probably be the last in a long line of boats I've owned since I was 17 or so (Im 36 now). They included a Pearson Ensign, Pearson 26, and a C&C 30.

sanjuan2R 04-28-2006 10:49 AM

Boat donation
It all depends on what the donator wishes to accomplish. If hamiam want to get the maximum tax donation, he should follow sailingdog's suggestion and sell it for the best price. Donate the sales proceeds to the non-profit org you wish to. But if hamiam wants to see the sailboat have another life, give it to a true sailing non-profit who will maintain the boat, teach others the joy of sailing and forever keep the joys of sailing flourishing. End of delima. Personally, I would sell it for the best price and donate your proceeds to your favorite non-profit. Better yet, donate your proceeds to a sailing non-profit such as Sea Scouts.
Your move.

feta 04-29-2006 02:55 AM

cheap boat ???????im all ears
mate im saving up for one but am prepared to fly over and give you a pittance for it.and turn it into a botany bay learning experiance for people who could never otherwise go sailing.either cos the idea is so bizarre or just never thought the way will you help me sail it back?????????
sorry it justs sounds too weird trying to write it off.good luck

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