I have an old boat that I no longer use, and it costs me quite a bit of money to keep it stored and insured. Since I am considering choosing to donate or sell it, I also have to keep on maintaining, servicing, and repairing it, which costs even more money. But should I donate my boat or should I sell it? There are pros and cons for both options and I felt it important to consider them.
Should I Sell My Boat?
Selling my boat means that I will get quite a nice sum of money in my hands with which I can do a great many things. On the other hand, it also means that I have to go through the hassle of advertising it, answer countless questions from time wasters, show the boat to those who are interested, and probably haggle on the price. All of that will take time during which I will have to continue to handle the costs associated with owning the boat. Apparently, there are a lot of disadvantages to doing this but the fact that I will get a sizeable chunk of money is a very big advantage as well.
Should I Donate My Boat?
The other option is to donate my boat. Obviously, this means I don't get any cash in my hand at all. However, if I donate to a charity like Rawhide.org, which is 501(c)3 registered, it does mean that I can deduct the value of my donation from my taxable income and reduce my tax due at the end of the year. The fact that I have to pay less tax is quite impressive because it means my disposable income increases. On the other hand, because the boat will be sold at auction, I won't know how much it will sell for and there is a chance that I would have gotten a far greater value had I simply sold it.
So what did I decide to do? I went for the donation option. While it is true that it meant I ended up with only a reduced tax payment amount, the system was quick, easy and hassle-free. Plus, it meant I did something good for the less fortunate, which is a true win/win situation!