Donating vessel to a 501 C 3

[pbmaise]

A not so academic question.


If an individual makes a single $500k donation (like a boat) to a 501 C 3 that is supported by an appraisal it looks like that person can deduct $100k per year for 5 years according to my research.


If 5 people own 1/5th interest in the item, it appears all 5 can claim $100k the first year.

If the vessel is not in the US who would the US IRS accept for the appraisal of the vessel?

[valhalla360]

Originally Posted by pbmaise

A not so academic question.


If an individual makes a single $500k donation (like a boat) to a 501 C 3 that is supported by an appraisal it looks like that person can deduct $100k per year for 5 years according to my research.


If 5 people own 1/5th interest in the item, it appears all 5 can claim $100k the first year.

If the vessel is not in the US who would the US IRS accept for the appraisal of the vessel?

This isn't a $500 oops if the IRS doesn't like our answer. Talk to a tax professional.

[pete33458]

The advice regarding consulting an accountant is good. There are specifics to every situation. There is a 5 year carry over for excess, but there are other limitations, including the donor's adjusted gross income (in each of the carry over years). The limits for property may be different to those for cash, and different types of 501(c)(3), such as private foundations vs. public charities, incur different limits for cash or property.

So you really do need to have your specific case reviewed in the context of the donor's AGI and the type of 501(c)(3). As far as value goes, it just has to be fair market value. You can prove this by providing listings of similar or identical boats for sale at the time of transfer, but an independent, formal appraisal is surely a lot better.

Pete