Perhaps your boat has been hit by another boat, damaged by vandals or affected by harsh weather and it has sustained serious damage. At this point, you might not be sure what to do with your boat. You can’t use it anymore, and you don’t think anyone else wants it.
This is not necessarily true. Read on to find out about donating a boat, even if it’s damaged.
How Does a Boat Get Damaged?
There are many ways a boat can become damaged. It could take a blow to the hull that would cause it to sink, or it could be damaged by a severe cold front that causes the engine block to crack. Also, the hull could be flooded with rain that would cause the engine and the gas tanks to rust. A boat could also suffer electrical damage. Sometimes a boat is vandalized and the sails, tiller, mast and booms are stolen.
There are a number of things that could happen to a boat. In these instances insurance is often not enough to replace the lost parts. In this situation, you might find yourself with a boat hull you are not sure what to do with.
Donating the Boat for Parts
One solution is to donate the parts of your damaged boats. There are many people out there who like fixer-uppers and who will seek out boat parts, so there is a demand. Donating a damaged boat is a great way to find a use for a boat you can’t use anymore while receiving a tax write-off for the amount donated. If you are in a high-income bracket, the tax savings can make a difference in your
yearly budget and can help you afford your replacement boat.
There are many charity organizations that accept old and damaged boats from donors. If your boat is useless to you, it could still help a charity. You and the charity both would benefit from the arrangement.
The first thing to do is to find the right charity and determine whether it accepts damaged boats. You will also need to make sure that the charity is registered so you can get a tax deduction for your donation. Take an inventory of the boat, the pieces that are damaged and what is left.
Contact the charity organization and make arrangements for donating the boat. You will likely need to complete forms or paperwork providing details of the boat and its location. Then, you should arrange a date for your boat to be picked up and towed away. When the boat-towing staff arrives, you need to transfer the boat title to them. You also need to ask the charity for a receipt, as this is what you need so you can write off your boat as a charitable tax deduction.
When the charity sells your boat or the parts of your boat, you need to get a copy of the bill of sale. This should include the final price of the donated boat, which you need to have when claiming a tax deduction.
One Man’s Junk Is Another’s Treasure
It is rare that a boat has no value whatsoever. Even if your boat has been damaged or vandalized, it is probably worth donating so it can help a charity. Donating your boat to charity is an excellent solution to a boat you can’t use anymore and also receive a tax write-off while benefiting a good cause. It is an example of a “win-win” situation in which everyone gets what they want.
About the Author: Peter Simpson is a blogger and longtime boat enthusiast whose sailboat was damaged by a heavy storm. He recently gave it to charity.