Re: [bolger] 1981 24' Phil Bolger Lobster Picnic Boat on EbAy
John,
It's done for the reason explained in the first sentence in the "Terms" paragraph, - tax benefits. Because the charity holds the title of the boat for two years the donor can claim a very high value that will stand up to IRS audit on the vessel giving the donor an excellent tax deduction, while the new owner can pay much below that agreed value. In most cases the charity gets to keep all the "charter" income plus the final payment. Often the buyer pays the charity all but one dollar of the agreed upon sale price up front as the "charter" fee [which dosen't have to agree with what the donor claimed as a tax deductable value], then at the end of the "charter" buys out the boat for one more dollar and gets full ownership and clear title. This gets maximum tax benefits to the donor and maximum cash into the charity which is what drives this system.
The other way to do this is the charity takes possession of the vessel and turns it immediatly over to a specialized broker whose job it is to sell it asap, (around here in less than 5 days) for whatever the quick sale market will bear. In that case the donor can only take a tax deduction for the actual final sale price minus sales expenses, the buyer typically gets a real inexpensive boat, the broker decucts sales expense from the sale price then returns a small portion (here it's 20%) of the balance to the charity and keeps 80% for his efforts..
Sad in a way as many boats are donated to a charity with the thought that the charity will somehow use the boat, or at the least fix it up and market it for a big gain, when in reality the boat is never even seen by the charity, and they typically pocket less then 10% of the "as is, where is" quick sale price... But they say, 10% is better than nothin.... The charity gets some cash for nearly no effort, the broker makes some good money, the buyer can get a real bargin, the donor gets a smaller than I bet they figured on tax deduction.
The "charter" plan seems top work best overall.
Rick
[who has a friend who has worked as a "speciality charity broker" for mmore then 20 years]
John Bell <smallboatdesigner@...> wrote:
There is a very curious legal arrangement WRT to the terms of sale. Anyone
care to explain why any buyer would agree to them?
It's done for the reason explained in the first sentence in the "Terms" paragraph, - tax benefits. Because the charity holds the title of the boat for two years the donor can claim a very high value that will stand up to IRS audit on the vessel giving the donor an excellent tax deduction, while the new owner can pay much below that agreed value. In most cases the charity gets to keep all the "charter" income plus the final payment. Often the buyer pays the charity all but one dollar of the agreed upon sale price up front as the "charter" fee [which dosen't have to agree with what the donor claimed as a tax deductable value], then at the end of the "charter" buys out the boat for one more dollar and gets full ownership and clear title. This gets maximum tax benefits to the donor and maximum cash into the charity which is what drives this system.
The other way to do this is the charity takes possession of the vessel and turns it immediatly over to a specialized broker whose job it is to sell it asap, (around here in less than 5 days) for whatever the quick sale market will bear. In that case the donor can only take a tax deduction for the actual final sale price minus sales expenses, the buyer typically gets a real inexpensive boat, the broker decucts sales expense from the sale price then returns a small portion (here it's 20%) of the balance to the charity and keeps 80% for his efforts..
Sad in a way as many boats are donated to a charity with the thought that the charity will somehow use the boat, or at the least fix it up and market it for a big gain, when in reality the boat is never even seen by the charity, and they typically pocket less then 10% of the "as is, where is" quick sale price... But they say, 10% is better than nothin.... The charity gets some cash for nearly no effort, the broker makes some good money, the buyer can get a real bargin, the donor gets a smaller than I bet they figured on tax deduction.
The "charter" plan seems top work best overall.
Rick
[who has a friend who has worked as a "speciality charity broker" for mmore then 20 years]
John Bell <smallboatdesigner@...> wrote:
There is a very curious legal arrangement WRT to the terms of sale. Anyone
care to explain why any buyer would agree to them?
----- Original Message -----
From: "Bruce Hallman" <bruce@...>
To: <bolger@yahoogroups.com>
Sent: Saturday, January 14, 2006 2:25 PM
Subject: [bolger] 1981 24' Phil Bolger Lobster Picnic Boat on EbAy
|http://hort.net/+135B
|
| 1981 24' Phil Bolger Lobster Picnic Boat _Mikim_
| Ebay Item number: 4604697849
|
|
| Bolger rules!!!
| - no cursing, flaming, trolling, spamming, respamming, or flogging dead
horses
| - stay on topic, stay on thread, punctuate, no 'Ed, thanks, Fred' posts
| - Pls add your comments at the TOP, SIGN your posts, and snip away
| - Plans: Mr. Philip C. Bolger, P.O. Box 1209, Gloucester, MA, 01930, Fax:
(978) 282-1349
| - Unsubscribe:bolger-unsubscribe@yahoogroups.com
| - Open discussion:bolger_coffee_lounge-subscribe@yahoogroups.com
| Yahoo! Groups Links
|
|
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|
|
|
Bolger rules!!!
- no cursing, flaming, trolling, spamming, respamming, or flogging dead horses
- stay on topic, stay on thread, punctuate, no 'Ed, thanks, Fred' posts
- Pls add your comments at the TOP, SIGN your posts, and snip away
- Plans: Mr. Philip C. Bolger, P.O. Box 1209, Gloucester, MA, 01930, Fax: (978) 282-1349
- Unsubscribe:bolger-unsubscribe@yahoogroups.com
- Open discussion:bolger_coffee_lounge-subscribe@yahoogroups.com
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[Non-text portions of this message have been removed]
There is a very curious legal arrangement WRT to the terms of sale. Anyone
care to explain why any buyer would agree to them?
care to explain why any buyer would agree to them?
----- Original Message -----
From: "Bruce Hallman" <bruce@...>
To: <bolger@yahoogroups.com>
Sent: Saturday, January 14, 2006 2:25 PM
Subject: [bolger] 1981 24' Phil Bolger Lobster Picnic Boat on EbAy
|http://hort.net/+135B
|
| 1981 24' Phil Bolger Lobster Picnic Boat _Mikim_
| Ebay Item number: 4604697849
|
|
| Bolger rules!!!
| - no cursing, flaming, trolling, spamming, respamming, or flogging dead
horses
| - stay on topic, stay on thread, punctuate, no 'Ed, thanks, Fred' posts
| - Pls add your comments at the TOP, SIGN your posts, and snip away
| - Plans: Mr. Philip C. Bolger, P.O. Box 1209, Gloucester, MA, 01930, Fax:
(978) 282-1349
| - Unsubscribe:bolger-unsubscribe@yahoogroups.com
| - Open discussion:bolger_coffee_lounge-subscribe@yahoogroups.com
| Yahoo! Groups Links
|
|
|
|
|
|