subject: Donate Boat, Air, And Recreational Vehicles For Kindness And A Tax Deduction [print this page] With the government constantly modifying taxes laws and regulations, exemptions and credits are becoming more difficult to find while taxation continues to increase with little regard to income. Without options like car and boat donations, the small return that used to arrive at the end of the year has become a huge liability. Individuals who can donate boat, car, and recreational vehicles to families in need are able to write off the fair market value as a tax deduction, regardless of the working condition of the vehicle.
In 2009, the U.S. government opted to provide a stimulus package by reducing the amount of taxes removed on each paycheck. Due to the small change, many individuals failed to notice much benefit throughout the year, but noticed a huge change at tax season when they owed far more than usual. Due to the unexpected increase in tax bracket, some individuals have become desperate to find ways to reduce the amount owed, and car and boat donations have offered a simple, yet powerful answer.
The main benefit to a boat donation over a sale, other than the humanitarian aid that is offered, comes from the amount of time, the need for an expensive middle man, and the profit loss that occurs during a sale. Often times, due to the urgency of the seller, a low bid is accepted as a means to get rid of the vehicle, while those with patience find that ads and broker fees continue to pile up with little hope of a reasonable offer being generated.
Alternatively, boat donations are quickly processed, repaired, and auctioned to receive the highest fair market value available. On many occasions, individuals with a boat will also want to donate boat supplies, and the condition and quality of the supplies can help increase the value of the boat at auction. In either case, the tax deduction is a great method for offsetting increased taxes while also reducing the financial burden on the family.
With the state of the economy, it is unknown if and when the IRS decides to limit the total deduction available for a car or boat donation. However, the government has always been gracious to individuals who donate to the disadvantaged, and vehicle donations are amongst the most beneficial charities available. Due to the value provided at sale, or the usability of a working vehicle, a single donation could be enough to turn around a single familys life or feed a shelter for a month.
About the Author:
Tim Page has helped numerous individuals through the boat donation process for the purposes of reducing tax liability and increasing available charity funds. Having worked with many donation businesses, Tim has learned how to maximize the tax benefits for each of his clients. Due to the eccentric nature of airplane and boat donations, the amounts received at sale, and the benefits that are had by all parties, Tim always recommends such charity as soon as the cost of the vehicle, or potential owed taxes, becomes too great.
by: Tim Page
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