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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1301
Experience:  Certified Public Accountant
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A boat valued at $95,000 is going to be given to boy scouts,

Customer Question

A boat valued at $95,000 is going to be given to boy scouts, the basis is $25,000. It has been owned for 6 months. How much can you deduct on Schedule A?
Submitted: 5 months ago.
Category: Tax
Expert:  Mark Taylor replied 5 months ago.

Hi my name is Mark. I will be happy to help you with your questions.

Customer: replied 5 months ago.

ok

Expert:  Mark Taylor replied 5 months ago.

I am checking on this for you. Do you know what the boy scouts will do with the boat?

Customer: replied 5 months ago.

no, they may keep it to use OR sell it for cash

Expert:  Mark Taylor replied 5 months ago.

The amount that you are able to deduct depends on what the boy scouts do with the boat.

Customer: replied 5 months ago.

OK, if they keep it and use it what would be the deduction

Expert:  Mark Taylor replied 5 months ago.

Ok if the sell the boat your deduction would be whatever they receive for the boat. If they keep the boat your deduction would be the Fair Market Value of the boat.

Expert:  Mark Taylor replied 5 months ago.

How did you determine the FMV of the boat?

Expert:  Mark Taylor replied 5 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Expert:  Mark Taylor replied 5 months ago.

Please let me know if you have any questions or need clarification. I am happy to help.

Expert:  Mark Taylor replied 5 months ago.

IRS publication 4303 would address your situation.