Tuesday, December 29, 2015

What is a Boat Donation Tax Deduction?

boat donation tax deduction
Many people who have been fortunate in life make charitable donations a part of their yearly financial picture.  Such donations are beneficial to the person making the donation, the organization receiving the donation, those who may be served by the donation, and the community as a whole.  Making a donation to an organization that benefits your community is a great way to feel good about yourself, as well as to give something back to the community in which you have been successful.  
Donations of both cash and usable goods are accepted by many charitable organizations.  Some organizations are set up to receive even donations of large items, such as vehicles and boats.  If you have an old vehicle or boat that you no longer want, or you don't want to go through the cost and hassle of selling it privately, you could easily consider donating it to a local organization.

If you decide to donate a boat to a local charity, one of the financial benefits you will receive is a boat donation tax deduction.  Depending on how the charity will use your donation, you can realize either the entire market value of your boat or a portion thereof as your tax deduction boat donation.  In addition to making sure that the charity you select is equipped to accommodate the donation of vehicles and boats, you will want to make sure that it qualifies as a 501(c)(3) government entity in order to realize your tax deduction.

Many organizations that do charitable, educational or religious work are designated as 501(c)(3) entities by the government.  If you are not sure of the status of the organization, make sure you ask the person there who is in charge of accepting and processing donations.  You can also call the Internal Revenue Service Customer Account Services division for Tax Exempt and Government Entities.  Before you call, make sure you know the name of the charity or organization.  It may also be helpful to have their address.  Your call to this Internal Revenue customer service line is always free.

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