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Boat Donation

  • 1.  Boat Donation

    Posted 12-27-2019 10:25 AM
    Hello Friends! Would the following statement be true? A non-motorized boat is not a "vehicle donation" for purposes of ​IRS Form 1098C but is a generic property gift. 1098C instructions are not clear on this point. However, in New York State, non-motorized boats are not registered, titled, or VIN-ed. Google not helpful. Hive mind thoughts appreciated. Thanks!

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    Aaron Forrest
    Senior Director
    University of Rochester
    aaron.forrest@rochester.edu
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  • 2.  RE: Boat Donation

    Posted 12-27-2019 10:33 AM
    For what it's worth, when we lived in Michigan we had a non motorized boat. A Sunfish sailboat, and we had to get a license for it and that license had to be stuck on the side of the boat and renewed regularly. As to the 1098c issue, I don't know.





  • 3.  RE: Boat Donation

    Posted 12-27-2019 01:58 PM

    In Illinois, I have to get a license for my Canoe if I want to use it on Public waters.

     

    Mark

     

    Mark Mathyer
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  • 4.  RE: Boat Donation

    Posted 12-27-2019 10:38 AM
    See IRS Publications 4302 and 4303.  I don't know the answer but I would err on the conservative side.

    John Taylor
    919.816.5903

    Big ideas; small keyboard





  • 5.  RE: Boat Donation

    Posted 12-27-2019 10:49 AM

    Yes, I read through those. Neither clarifies this point.

     

    Aaron

     

    Aaron Forrest CPA

    Senior Director Gift and Donor Services

    University of Rochester Office of Advancement

    Larry and Cindy Bloch Alumni and Advancement Center

    300 East River Road

    Rochester NY 14627

    Office 585.275.2799 / Fax 585-273-4558

    Email aaron.forrest@rochester.edu

     

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  • 6.  RE: Boat Donation

    Posted 12-29-2019 12:48 PM
    Acknowledging that the identification of a qualified motor vehicle is strikingly more detailed than the identification "boat," and acknowledging that the provision as written would seem to apply to a craft that sails across the water powered by wind but apparently not a glider that sails through the air powered by wind, and acknowledging that "motorized" would be a conceptually attractive distinguishing characteristic, I would, as is my wont, approach this analysis through the lens of a different question, namely, "Why is this provision in the tax code/what was Congress trying to accomplish?"

    My understanding that Congress was trying to address a perceived disconnect in the tax code, whereby a donor would realize a large tax donation when donating a personal conveyance of some ilk, based on a possibly-inflated fair market value, while the charitable recipient would in turn actually realize a categorically smaller benefit when they sold such contributed property. 

    From that perspective, it seems like gifts of sailboats would have been squarely in Congress's cross-hairs. Even in decidedly non-nautical educational institutions I ran across donations of sailboats that had exactly that characteristic of large-deduction, small-benefit (often with some related-use considerations thrown in as well).

    So while it might have been better if the law had been drafted with more detail, and may as a result sweep up your $600 kayak (not sure whether Congressional members or staff could have conceived of a $600 kayak in 2004), I'm pretty sure that some non-motorized boats would have been intended as part of the targeted vehicle class. 

    My US$0.02 worth; the usual disclaimers apply. 

    Alan


    Sent from my mobile device; please excuse the inevitable typing/autocorrect infelicities. 





  • 7.  RE: Boat Donation

    Posted 12-27-2019 02:19 PM

    From https://www.irs.gov/forms-pubs/about-form-1098-c

     

    A donee organization must file a separate Form 1098-C with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $500. A qualified vehicle is:

    • Any motor vehicle manufactured primarily for use on public streets, roads, and highways.
    • A boat.
    • An airplane.

     

    This seems pretty clear.

     

     

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    Bill Wong
    Manager of Giving Operations
    Savannah College of Art and Design ®


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  • 8.  RE: Boat Donation

    Posted 12-27-2019 03:53 PM

    So a $600 kayak from Dicks qualifies in your opinion? Hypothetically speaking.

     

    Aaron

     

    Aaron Forrest CPA

    Senior Director Gift and Donor Services

    University of Rochester Office of Advancement

    Larry and Cindy Bloch Alumni and Advancement Center

    300 East River Road

    Rochester NY 14627

    Office 585.275.2799 / Fax 585-273-4558

    Email aaron.forrest@rochester.edu

     

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  • 9.  RE: Boat Donation

    Posted 12-27-2019 04:10 PM

    I would say, yes. I can't find anything in IRS literature that defines "boat." A reasonable person would call a kayak a boat. You would have to leave the Identification field blank, if there is no such number.

     

    ––––––––––––––

    Bill Wong
    Manager of Giving Operations
    Savannah College of Art and Design ®


    office: 404.253.6081
    wswong@scad.edu / www.scad.edu

    SCAD40: Forty Creative Years


    SCAD: The University for Creative Careers ®
    NOTICE: This e-mail message and all attachments transmitted with it may contain legally privileged and confidential information intended solely for the use of the addressee. If the reader of this message is not the intended recipient, you are hereby notified that any reading, dissemination, distribution, copying, or other use of this message or its attachments is strictly prohibited. If you have received this message in error, please notify the sender immediately by telephone or by electronic mail and then delete this message and all copies and backups thereof. Thank you.

     

     






  • 10.  RE: Boat Donation

    Posted 12-27-2019 05:18 PM
    According to the dictionary a kayak is a boat as it is propelled by oars on water.

    If you need a tax opinion, though, I would defer to your attorney.  But honestly, I see no harm in issuing the 1098.

    John Taylor
    919.816.5903

    Big ideas; small keyboard





  • 11.  RE: Boat Donation

    Posted 01-02-2020 07:43 AM
    Edited by Eric Valdescaro 01-02-2020 07:44 AM
    Happy new year!  I know I'm late to this conversation, but I think this webpage from the IRS may help:  https://www.irs.gov/instructions/i1098c

    In their examples, the IRS refers to a boat as a vessel with hull identification number.  Another clue is that box 3 on the form itself demands an identification number.  And this makes sense, because what would be the purpose of issuing a 1098-C if there's no official way to uniquely identify and distinguish the watercraft from any other of same year, make, and model?

    In my estimation, you're likely safe presuming that any watercraft that does not have a hull identification number is regular TPP and not subject to the issuance of a 1098-C when its donated valued is over $500.  Conversely, watercraft with a hull identification number likely requires the issuance of a 1098-C when its donated value exceeds $500.

    My 2c,
    Eric
     


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    Eric Valdescaro
    Senior Director, Advancement Services
    University of Memphis
    eric.valdescaro@memphis.edu
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