Originally Posted by farm sail
Nice of you to try and help out but you may have screwed yourself it's very dangerous move. If the good old american IRS find out you bought a boat for cheap
and sold it for what they see as a profit you will owe substantial income
tax on your profit you will have a hard time proving you didn't profit also if it comes to light that the bill of sale
"selling" the boat from your buddy to you was signed after his death someone is looking at some serious charges and you can get a whole lot of trouble not a wise thing to do as much as you want to help I hope you come out okay on this.
Also for the OP, if in the USA and the boat is documented there are more hurdles to get a truly clean title. I would get an abstract of title from the USCG to make sure the boat is not documented Even if you are provided with what appears to be a clean state issued title
Agreed, it may have worked out this time but there was no need to muddy the waters and it creates risks on both sides.
What happens if the nice guy helping you sell your relatives boat decides to just pocket the profit? Once sold, it's his boat.
Giving the profits to the heir doesn't solve the tax issue. As far as the IRS is concerned, the money
you gave the heir is a gift. If large enough in addition to taxes
on the profits, it could exceed the gift limits and trigger taxes
on the heir.
Also, do you know if the estate had covered it's bills and there were any other heirs involved? Generally, the estate must cover all debts prior to the heirs getting stuff. If the court decides you were trying to scam the system by selling for next to nothing, they could come back on you as the sale was not legal as the heir didn't have the right to sell the boat.
All for a transaction that wasn't even needed. If you want to help, help coordinate the sale but sell directly from heir to buyer. Doing this will just make it look like you were hiding something if the poo hits the fan.