Not Using Your Yacht Much? Why Not Consider Donating Your Vessel? August 13, 2008
Posted by janey in : taxation , comments closedYou don’t have to be rich to receive substantial benefits from boat donation to a marine charity.
Contrary to general belief, donating your vessel does not mean “giving it away” without any benefits to you. In fact, many boat owners are finding that they can net more bottom line dollars from a boat donation than they can in an outright sale.
This is a very real possibility because you receive a tax deduction up to the market value of your vessel depending on the intended use by the non-profit organization plus your marine expenses end immediately – not in six months or a year while you’re waiting for a sale.
With high fuel prices and difficult economic times, any vessel broker will tell you that boats are taking much longer to sell these days, and you’re stuck with paying for moorage and maintenance costs until a sale is final.
In a boat donation, the transaction can be completed in a matter of days, there are no broker commissions to pay, and your expenses are eliminated immediately.
You’ll want to consult your accountant on how this applies to your individual situation, but you can deduct up to 100 percent of the appraised value of your yacht, depending on your tax situation and the intended use by the nonprofit group.
You can then apply this savings on up to 50 percent of your adjusted gross income annually, and any remaining balance not immediately deducted can be carried forward for the next five years.
That’s important to note: you can deduct the value of your boat donation for up to five years forward. It doesn’t matter if you can use the deduction now – if you expect to have a significant taxable income anytime in the next five years, a tax-deductible vessel donation could come in handy.
When you add up the tax deductible value of your yacht donation plus all of the money you save by not having to pay any more boat expenses during a protracted sales effort, you could end up with more money than you would in an outright sale.
By donating your boat to Pacific Marine Foundation, your ongoing expenses of ownership, such as moorage, maintenance and fuel, terminate immediately, and there are no more headaches with showing your boat to bargain hunters and “fender kickers”.
Pacific Marine Foundation has quickly become a leader in the field of boat donations precisely because of its expertise in understanding and managing the complexities of marine donation. Our paid and volunteer staff includes attorneys, yacht brokers, marine equipment specialists, licensed commercial captains and industry experts with more than 30 years in the business.
When you decide to donate your boat to the Pacific Marine Foundation, you can be assured that your gift will be handled promptly, professionally, with legal integrity and with personal care. We have the proven experience.
A tax-deductible vessel donation to Pacific Marine Foundation offers you significant advantages. While your gift gives you the benefit of an immediate tax savings at 100 percent of appraised value, it also creates tangible benefits for our recipient organizations.
While you might not have a high taxable income now, but if you expect to have a high income — and high tax bill — in the next five years, you might be a good candidate for donating your boat! Naturally, you would want to consult your tax adviser.
A gift to Pacific Marine Foundation is a legitimate alternative to what may otherwise be a disappointing return on sale, and you’ll be making a contribution that helps support our youth programs.
Contact Us for a no-obligation consultation at 1-888-GIFT-BOAT (888-443-8262) or visit our web site at PacificMarine.org.
What You Need To Know About Taxes July 27, 2008
Posted by janey in : taxation , comments closedThe last thing you need to worry about as a small business is your taxes, right? This is the principle of many small businesses as they feel like they are somehow exempt from many of the rule because of their employment status – but this is far from the truth.
In reality, many upcoming businesses are shutting down because of problems with their taxes, not paying enough, or failing to pay altogether, resulting in high penalties that the business simply can not afford.
You need to find out exactly what you need to do in order to begin to set up a healthy financial statement for your new business. Instead of finding out the hard way in an audit or in a prison cell, you can find out what your taxes can do FOR you.
Taxes are setup as a way to help the government make money from those that pay. But since not everyone is going to be honest about their income or their deductions, there is a strict and very detailed tax code. No one can keep up with it and even fewer people can understand it if they don’t already have a degree or training in tax law.
As a small business, you don’t have the time to handle this. You can find a lot of free tax information from the internet or you may look for some tax guide as well that will show you how to find professional help that can manage the problems for you.
If you have payroll taxes that you need to pay, or want to know how you can cut down your taxes for the next year, that’s covered too. No matter what you need to find out about, you will Need to Know.
Some businesses are choosing to become nonprofits in order to receive tax exempt status. But the question is, do you qualify and how do you proceed through the setup process?
No matter where you are at with your business ideas, you will have to find out about taxes and what you need to do to make them a little less burden.
You can’t avoid them, so tackle them head on.
