Boat Donation for Tax Deduction

So you've made the decision to donate your boat to charity and now you want to learn about the tax deduction for your donation, but you don't know who to ask for help. Luckily, I'm here to offer some help and point you in the right direction for the pros in this industry.

There are many different charities to chose from when donating boats, and not all charities are created equally. When you donate to charity, make sure that you understand what type of charity they are because it will impact the amount of your deduction. The following excerpt was pulled directly from the IRS website:

Limitations on Deductions

In general, contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carrybacks. Contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations are limited to 30 percent adjusted gross income (computed without regard to net operating loss carrybacks), however. Exempt Organizations Select Check uses deductibility status codes to indicate these limitations.

The 50 percent limitation applies to (1) all public charities (code PC), (2) all private operating foundations (code POF), (3) certain private foundations that distribute the contributions they receive to public charities and private operating foundations within 2-1/2 months following the year receipt, and (4) certain private foundations the contributions to which are pooled in a common fund and the income and corpus of which are paid to public charities.

The 30 percent limitation applies to private foundations (code PF), other than those previously mentioned that qualify for a 50 percent limitation, and to other organizations described in section 170(c) that do not qualify for the 50 percent limitation, such as domestic fraternal societies (code LODGE).

Charity Boats is a 50 percent organization, which means that you are able to deduct up to 50% of your adjusted gross income when you donate a boat to this charity, and since 50% is the largest deduction allowed, this is great news for a donor who is looking to maximize their boat donation tax deduction! Their website also has useful information about the donation process and tax benefits, and if you have questions that aren't answered by the information on the site, you can contact them via telephone, electronic message, or even chat with a live operator! Pretty convenient!

Contact Charity Boats at 888-888-7187, or visit http://www.charityboats.org/ for more information!