Donating a large item, such as a boat or car to charity has many different benefits. One of the obvious benefits that come from boat donations is going to be that the charity is going to receive a large sum of money and can distribute that money for various needs. Not to be overlooked, however, are the benefits that come to the individual that is donating the boat. What are those benefits and how can you make sure that you are getting the most out of them?
In any type of vehicle donation, there is always going to be a tax advantage to the individual that is donating the boat or automobile. The exact amount that you are going to be able to claim on your taxes, however, is going to vary according to several different criteria. Quite obviously, yacht donations are going to have a much better tax advantage than if you were donating a much smaller boat, but in either case, you will have a write off. It is important for you to understand how much you are able to claim on your taxes for this, particularly if you’re giving something with significant value. Why is that the case?
When the IRS sees a large deduction, such as what you would get with a boat donation, they are going to look at it very carefully. If you are claiming anything above $500 on your taxes, you really are going to need to have proof as to how you can justify that. Discuss this with the company where you plan on donating the vehicle and they will be able to assist you in this delicate matter.
