Filing For A Boat Donation Tax Deduction

By making a boat donation, the service users of your chosen charity will benefit greatly from your kindness. But you will benefit as well, because you can file for a boat donation tax deduction that will reduce your taxes. Indeed, by making such a donation, you could increase your disposable income substantially because you are able to reduce your taxable income by the value of the boat. How you will use these savings would be up to you. For instance, you can offset any taxes you owe for the next five years. People all over the country have claimed a boat donation tax deduction and you can as well.

How to Donate a Boat

Before you can make this type of deduction, you will need to donate your boat. There are lots of charities that will accept a boat as a donation. The only real rule is that the charity must be 501(c)3 registered, otherwise you will not be able to claim a deduction on your taxes. It is up to you to choose a cause that you care about. The process itself should be very straightforward, meaning that the charity will come and pick your boat up and send you a tax receipt within the next 30 days, which will denote the value of your donation. That is also what you need for the next step: the actual boat donation tax deduction.

How to Claim a Boat Donation Tax Deduction

Once you have donated your boat, you will have complete one or two forms. The first is IRS Form 1098C. This is used for all charitable donations, regardless of the type, the charity, or the value of the donation. This form can be downloaded from the IRS website, although many charities also have it on their site. This form proves to the IRS that your donation is eligible for a tax deduction.

If the value of your donation was $5,000 or more, you will also have to complete IRS Form 8283. You must also attach your tax receipt to this form, as well as Form 1098C. In some cases, the IRS will require proof of value through an independent valuation. The charity should inform you of this as well as be able to put you in touch with an appraiser.