Archive for » May 21st, 2012«

Negotiate a ‘bargain sale’ to qualified charity

Are you planning to sell or donate a boat or car to charity? Don’t be too hasty.

Strategy: Arrange a “bargain sale” to a qualified charitable organization. By combining a sale and donation, you get cash back from the charity, plus a write-off based on the property’s fair market value.

Many charities buy and receive vehicles, while others specialize in bargain sales and donations of boats (see box below).

Here’s the whole story: In a bargain sale, you treat part of the transaction as a sale and the other part as a charitable donation. The donation part is the difference between the asset’s fair market value and the bargain price. The other part may result in a taxable gain if your basis is low.

To determine the amount of the taxable gain, adjust your basis to take into account both parts of the transaction. The formula for determining adjusted basis for the taxable sale is (1) the adjusted basis of the entire asset multiplied by (2) the amount realized divided by the fair market value of the entire property.

With planning, you can use the tax deduction for the charitable part of the sale to offset the taxable gain on the sale.

Example 1: Bargain sale of appreciated property

You bought a boat several years ago for $30,000 that’s now worth $40,000. If you sell the boat to charity for the original $30,000 cost, your adjusted basis for the taxable portion of the bargain sale is $22,500 (75% × $30,000). So you realize a taxable gain of $7,500. Because the gain qualifies as long-term capital gain taxed at the current 15% maximum rate, you owe $1,125 in tax (15% of $7,500).

But you’re also entitled to a charitable deduction for the extra $10,000 attributable to the value of the boat, assuming the charity uses it to further its tax-exempt purpose. In your 33% tax bracket, the deduction is worth $3,300, almost three times the tax on the gain. And you walk away with $30,000 in cash. The bargain sale strategy can also work for property that has declined in value.

Example 2: Bargain sale of depreciated property

You bought a car for $30,000 that’s now worth $20,000. You agree to sell the car to a charity for $15,000. In this case, you’ll receive $15,000 in cash and claim a $5,000 charitable tax deduction on your return. You pay zero tax on the sale because the car is worth less now than when you bought it.

Since a bargain sale involves a valuation of a boat or car, you must observe the strict substantiation requirements imposed by the IRS. But there’s less at stake than with a straight donation. Reason: The key to the deal is the bargain price arranged with the charity.

Tip: If you sell a car or boat to charity, you must obtain a written acknowledgment from the charity within 30 days of the sale.



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Boats in fatal Iowa crash were shuttling partiers


The late-night boat crash that killed four people along the Mississippi River over the weekend involved two small fishing boats that were shuttling partiers to shore in southeast Iowa, authorities said Monday.

Those involved had been partying on an island sandbar on a section of the river near the small town of Burlington, Des Moines County Sheriff Mike Johnstone said. The flat-bottomed aluminum boats crashed nearly head-on while shuttling people to a dock downriver around 2 a.m. Saturday. At least one boat didn’t have lights.

A newer boat had dropped people off and was returning for more when it hit an older boat with 11 people on board. The front of the older boat was torn off, and all of its occupants were thrown into the water, Johnstone said.

The newer boat, which sustained minor damage, was able to rescue all but four people whose bodies were pulled from the water Sunday within 100 yards of the crash site. The victims were identified as Jacob Boyd, 22; Matthew House, 21; Blake Eakins, 21; and Caitlyn Atchley, 20. All were from Burlington.

“They were all just local friends that hang out on the river,” Johnstone said. “We’re a river town and we all go out on the weekends, and different groups hang out in different areas.”

The eight survivors didn’t suffer life-threatening injuries, Johnstone said.

He said alcohol was served at the party but it’s too early to tell whether it was a factor in the collision. The operators of both boats have taken blood-alcohol tests, though the results haven’t been released. It is illegal in Iowa to operate a boat with a blood-alcohol level above 0.08.

Iowa Department of Natural Resources Officer Paul Kay told radio station KBUR that both boats had life jackets, but it appears they weren’t being used. Iowa law requires a boat to carry life jackets for each passenger, but it only requires them to be worn for passengers age 12 and under.

Authorities planned to continue interviews this week.

There was no moonlight at the time of the crash, which occurred about four miles north of the U.S. Highway 34 bridge that crosses the Mississippi River at Burlington. One boat had no lights and it’s unclear if the other did, Johnstone said.

The boat carrying 11 people was built in 1977, and it wasn’t immediately clear if it had a Coast Guard rating that dictated the total weight it was allowed to carry. Still, the operator of the boat is responsible for ensuring it is not overloaded, Kay said.

Johnstone said there are laws against operating a boat in an unsafe manner that can be enforced when a boat is loaded beyond safe capacity.

“Every boat has a limit to what it can carry,” he told The Associated Press in an interview. “I can tell you from my personal experience 11 was too many for that boat.”

One boat was 18 feet long the other was 20 feet. They were both jon boats, a term used for boats with flat bottoms, usually made of aluminum and frequently used for fishing.

Johnstone and Kay stressed boating safety as the Memorial Day holiday approaches and water recreation increases.

Iowa Gov. Terry Branstad opened his weekly news conference Monday by discussing the accident, echoing the other officials’ warnings.

“I want to remind Iowans that it’s important that we put safety first whenever navigating our waterways and our highways,” he said. “We need to be alert, we need to be prepared and if we’re in a boat we need to be wearing lifejackets.”


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Deadline looms to buy new sheriff’s patrol boat

First, the good news: The Pierce County Sheriff’s Department won the $525,000 Homeland Security grant it needed to buy a new saltwater patrol and rescue boat.

Now, the not-so-good news: It must find a company to build and deliver the boat in the next 13 months or possibly lose the money.

The June 2013 deadline is a requirement to beat the expiration of the federal grant, said Lt. Peter Cropp, of the sheriff’s marine services unit.

“We’re under a time crunch now, that’s for sure,” Cropp said. “We need to move on this as quickly as possible.”

The Sheriff’s Department is contacting boat-building companies inside and outside Washington. The cost approved for the boat – including sales tax – is $730,000.

The vessel will replace the Sheriff’s Department’s last saltwater boat, Reliance, which sank last summer. A corroded water-intake pipe caused it to sink while docked in Tacoma.

The new boat will be bigger and faster and have more advanced technology.

It will be built to order, but there’s no design in hand yet. The Sheriff’s Department needs to know what it will get for the money and how soon a company could start building and finish, Cropp said.

After overcoming initial sticker shock, the Pierce County Council in February approved the money for the boat.

Cropp said the Sheriff’s Department is aiming to get the job done for less than $700,000.

“We’re looking at the best boat we have for the funding we have,” he said.

The Sheriff’s Department got word nearly two weeks ago that the grant was approved. It is tied to 2008 federal funding that requires projects to be finished by June 30, 2013, Cropp said.

“If we can’t meet that guideline, I don’t know what’s going to happen,” he said, adding that he’s trying to find out if an extension is possible.

The boat is expected to be 35 to 37 feet long. It will be used to patrol 235 miles of saltwater shoreline from south of Vashon Island to Thurston County. The area includes McNeil, Fox and Anderson islands, Browns and Dash points, and Key Peninsula.

The county also shares jurisdiction with the City of Tacoma below the Tacoma Narrows Bridges and for the Port of Tacoma.

An $130,000 insurance payment for the 32-foot-long Reliance will help pay for the new boat. The remainder will come from Pierce County’s share of state boating registration fees, Cropp said.

steve.maynard@thenewstribune.com
253-597-8647
blog.thenewstribune.com/street
@TNTstevemaynard


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North Korea releases captured Chinese fishermen, boats

The release of the boats does little, however, to clear up questions about whether impoverished North Koreans are engaging in Somalia-style piracy to raise money. Following the death of leader Kim Jong Il in December, North Korea elevated his 28-year-old son, Kim Jong Un, to replace him, and some believe the transition has not gone smoothly.

“If North Korean governmental authorities are linked to this incident, we could suspect that the central government’s control has weakened in the process of power shift to Kim Jong Un,” said Lee Dong-bok, senior associate at Center for Strategic and International Studies in Seoul.

Last week, Sun Caihui, the owner of one of the fishing boats, described the vessel that captured his as a small, heavily armed military vessel. “The kidnappers’ ship is definitely from the North Korea military,” he said.

China is North Korea’s main ally and the source of most of its fuel oil, investment capital and food aid, but Pyongyang has irritated its patron in recent months by ignoring Beijing’s calls for restraint in its weapons programs.

Chinese fishery officials were quoted Monday as demanding an investigation into who in North Korea was behind the seizure of the boats. The state-run Global Times newspaper said hundreds of Chinese fishing vessels had been ordered to retreat westward to avoid another incident.

One official told the newspaper that there had been other incidents in which the North Korean coast guard had stolen from Chinese ships.

“The North Korean coast guards took almost everything, even pencils and clothes. They also pumped the fuel out of seized boats, leaving just enough for the journey home,” a local boat owner was quoted telling the newspaper.

ALSO:

Lockerbie bomber Megrahi dies in Libya

Hundreds left homeless in Italy after magnitude 6.0 quake

U.S. officials frustrated as Pakistan still blocking supply routes

— Barbara Demick in Beijing and Jung-yoon Choi in Seoul

 


Similar news:

Deadline looms to buy new sheriff’s patrol boat

First, the good news: The Pierce County Sheriff’s Department won the $525,000 Homeland Security grant it needed to buy a new saltwater patrol and rescue boat.

Now, the not-so-good news: It must find a company to build and deliver the boat in the next 13 months or possibly lose the money.

The June 2013 deadline is a requirement to beat the expiration of the federal grant, said Lt. Peter Cropp, of the sheriff’s marine services unit.

“We’re under a time crunch now, that’s for sure,” Cropp said. “We need to move on this as quickly as possible.”

The Sheriff’s Department is contacting boat-building companies inside and outside Washington. The cost approved for the boat – including sales tax – is $730,000.

The vessel will replace the Sheriff’s Department’s last saltwater boat, Reliance, which sank last summer. A corroded water-intake pipe caused it to sink while docked in Tacoma.

The new boat will be bigger and faster and have more advanced technology.

It will be built to order, but there’s no design in hand yet. The Sheriff’s Department needs to know what it will get for the money and how soon a company could start building and finish, Cropp said.

After overcoming initial sticker shock, the Pierce County Council in February approved the money for the boat.

Cropp said the Sheriff’s Department is aiming to get the job done for less than $700,000.

“We’re looking at the best boat we have for the funding we have,” he said.

The Sheriff’s Department got word nearly two weeks ago that the grant was approved. It is tied to 2008 federal funding that requires projects to be finished by June 30, 2013, Cropp said.

“If we can’t meet that guideline, I don’t know what’s going to happen,” he said, adding that he’s trying to find out if an extension is possible.

The boat is expected to be 35 to 37 feet long. It will be used to patrol 235 miles of saltwater shoreline from south of Vashon Island to Thurston County. The area includes McNeil, Fox and Anderson islands, Browns and Dash points, and Key Peninsula.

The county also shares jurisdiction with the City of Tacoma below the Tacoma Narrows Bridges and for the Port of Tacoma.

An $130,000 insurance payment for the 32-foot-long Reliance will help pay for the new boat. The remainder will come from Pierce County’s share of state boating registration fees, Cropp said.

steve.maynard@thenewstribune.com 253-597-8647 blog.thenewstribune.com/street @TNTstevemaynard


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5 dead as fishing boat sinks off French island

PARIS — The French government says a fishing boat sank off the French island of Mayotte in the Indian Ocean, leaving two adults and three children dead. Fifteen people are still missing.

The small, motorized vessel was carrying around 40 people, witnesses said. It went down Saturday afternoon after setting off from the African Comoros Islands.

In a statement Sunday, the Overseas Territories Ministry said 19 people were rescued and taken to the hospital in Mayotte’s capital, Mamoudzou.

Overseas Minister Victorin Lurel says an air and sea search operation will continue “as long as necessary” to find the missing.

It’s not immediately clear what caused the sinking, but the small “kwassa-kwassa” boats are thought ill-equipped for long sea trips.

The 115 kilometer (71.46 mile) stretch to Mayotte is a common route for Comorians who hope to reach the richer French administered island.

.


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Captain Favorite’s Fishing Forum May 21, 2012

Catch of the Week

Jason Morrow  caught this 45 inch cobia caught off the beach on a pinfish.

BRADENTON – A giant 109 pound amberjack was caught at the Sam Crosthwait Memorial Fishing Tournament over the weekend. It’s time to sign up for the fifth annual Fire Charity Tournament that will take place on June 8 through 10. The next weekend a nautical flea market iwll be held in Cape Coral. 


Fishing Updates

 

5th Annual Fishing Tournament to Benefit Children’s Burn Camp 

  • Remember when your Dad took you fishing?  How about Grand Dad?  NO?  Create a memory with your kids and bring them fishing at this special weekend event. Create your own Corporate Team.   How about an all Women’s Team.
  • There’s even a special Trophy for the winning Firefighter’s Team.
  • This fishing tournament will run from June 8-10th along the Manatee River.  Besides fishing, there will be live music and family entertainment at Bradenton Yacht Club, located in Palmetto, Florida. 
  • Kids get their face painted, participate in arts and crafts, pick up beads, and much more. An art auction and raffles will be done to add even more money to the charity. 
  • This year’s event was created to bring families together on the water enjoying one of Florida’s favorite sports. AND this Fun FAMILY event is FREE to attend beginning at 1 pm on Sunday for the Weight In Party.

 

2012 Cape Coral Summer Boat Show Nautical Flea Market

  • The Lee County Nautical Flea Market and BBQ Festival will be held Saturday and Sunday, June 16-17, 2012, from 9 a.m. to 6 p.m. at the centrally located German America Club, 2101 Southwest Pine Island Road, Cape Coral, FL 33991.
  • The Lee County Nautical Flea Market and BBQ Festival is the best place to find bargains, quality and a wide variety of fishing equipment and supplies, restock up here.
  • No other event can match the depth of this fishing and boating trade event. People come to flea markets ready to buy or sell so this is the perfect opportunity to get fishing and boating bargains PUBLIC BOAT AUCTION…Over 100 boat repossessions, short sales, dealer trades, and private liquidations will be up for sale. 
  • The auction boat preview is all day Saturday June 16, 2012 and the sale starts at 11:00 am Sunday June 17, 2011. As many as 10,000 boat enthusiasts have attended past editions of this two day event.
  •  To pre register to sell or buy a boat www.FLNauticalFleaMarket.com BOAT CORRAL… The boat corral area is completely separate from the nautical flea market area. It is designed for private and dealer new and used boat sales. Customers can shop, compare and make the deal directly with the seller. All boats in the corral are for sale. The boat corral is where individuals offer boats and watercraft only (no parts, etc) for sale. 
  • All boat corral spots ARE $25.00 and can be reserved http://www.FLNauticalfleamarket.com Visit the 2012 Lee County Nautical Flea Market and BBQ Festival website for more information, special hotel rates and specific driving directions: http://www.flnauticalfleamarket.com. Vendor applications are still being accepted. For information and discount tickets, visit the website or contact Under the Sun Promotions, Inc. at 954-205-7813, FAX: 561-395-5389

 

 

Weekly Fishing Report by Capt. Chad Gamble 

 

 You want to go deep or shallow, Gulf or Bay, blue or brown water?  Right now it doesn’t matter where I have been fishing.  We have caught fish in the gulf ten miles out and trout and snook in ten inches of water!

 

King fish are still here and have been eating every bait we throw at them.  It seems that a second wave of them is passing though right now but I personally believe that they are on their way out.  I have been on the water the last seven days fishing them and have seen a slight decline as these beautiful speedos make their way north.  

Sharks are another species that are seemingly everywhere right now as they are chasing the bait we have recently gotten in our area.  They are mixed in with the kingfish and Spanish mackerel ranging anywhere from 2-6ft long.  If you’ve never seen a spinner or blacktip shark jump when hooked, let me tell you it’s a sight!  They will jump out of the water sometimes 10 ft. high and will “spin” like a football in a spiral.  It is something you have to see to believe.  I don’t know how they do it, but when they spin, it is so fast you can actually hear their fins cutting the air like a high speed fan.   

 

My personal best catch this week was a huge 36 pound cobia caught off the beach. I was out with a friend of mine cruising the beach looking for tarpon, when we noticed a manatee with a cobia following it.  We pitched a pinfish at the cobia and he instantly inhaled it.  Pretty cool stuff to watch in gin clear water 4 ft. deep.  Enjoy the video, and get out there on the action. 

 

USCG Captain Chad Gamble

HookandLadderCharters.com

Email at Hookandladdercharters@gmail.com

Call (941) 809-8922

Find me on Facebook

 

Fishing Forecast

 To create a forecast specific to

your zip code visit

www.wunderground.com

 

High pressure to the north of the waters will maintain a northeast to easterly wind flow over the Gulf waters today through early Monday…with an easterly surge each evening and an onshore sea breeze component developing along the coast each afternoon. Surface high pressure will set up across the Central Peninsula during the upcoming week with lighter winds and an onshore sea breeze developing near the coast each afternoon.

 

Monday

Southeast winds around 5 knots becoming west around 10 knots in the afternoon. Bay and inland waters a light chop. Monday night will bring northwest winds around 10 knots becoming northeast around 5 knots overnight. Bay and inland waters a light chop.

2012/05/21Mon03:06 AM1.36H

2012/05/21Mon06:42 AM1.17L

2012/05/21Mon12:37 PM2.48H

2012/05/21Mon09:05 PM-0.24L

 

Tuesday

West winds around 10 knots. Bay and inland waters a light chop. Tuesday night

will bring southwest winds around 10 knots until early morning becoming variable less than 5 knots. Bay and inland waters a light chop.

2012/05/22Tue03:42 AM1.32H

2012/05/22Tue07:07 AM1.17L

2012/05/22Tue01:10 PM2.52H

2012/05/22Tue09:41 PM-0.24L

 

Wednesday

Wind variable less than 5 knots becoming northwest around 10 knots by afternoon. Bay and inland waters a light chop. Wednesday night will bring east winds around 10 knots. Bay and inland waters a light chop.

2012/05/23Wed04:17 AM1.31H

2012/05/23Wed07:38 AM1.17L

2012/05/23Wed01:46 PM2.51H

2012/05/23Wed10:19 PM-0.22L

 

Thursday

North winds around 10 knots. Bay and inland waters a light chop. A slight chance of thunderstorms in the afternoon. Thursday night will bring east winds around 10 knots. Bay and inland waters a moderate chop.

2012/05/24Thu04:55 AM1.31H

2012/05/24Thu08:19 AM1.18L

2012/05/24Thu02:27 PM2.46H

2012/05/24Thu11:00 PM-0.17L

 

Friday

Northeast winds 10 to 15 knots. Bay and inland waters a moderate chop. A slight chance of thunderstorms.

2012/05/25Fri05:36 AM1.35H

2012/05/25Fri09:13 AM1.2L

2012/05/25Fri03:13 PM2.36H

2012/05/25Fri11:43 PM-0.1L


Solunar Forecast


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Sailing-Storm threatens bumpy ride for Volvo fleet

Tropical storm Alberto lay in wait
for the Volvo Ocean Race fleet on Sunday, threatening a
potentially boat-breaking reception to leg 7 across the Atlantic
from Florida to Portugal.

The six-strong regatta departed Miami in almost windless
conditions which restricted speeds to just a few knots but that
was all set to change with Alberto promising wind speeds of 83
kilometres (51 miles) per hour and seven-metre (23 feet) waves.

The race was tantalisingly poised with overall leaders Team
Telefonica, skippered by London Olympics gold medal contender
Iker Martinez, protecting a seven-point advantage over French
crew Groupama.

Just 14 points separates the leading four boats, a tiny gap
with leg wins worth 30 points apiece.

The pressure seemed to be telling on Telefonica who have now
blown two consecutive in-port races in Itajai, Brazil and Miami
after Martinez’s crew made navigational errors in both.

Jules Salter, who helped guide Abu Dhabi to victory in
Saturday’s Miami in-port race, believes the storm front could
help propel his team through the early stages of the Atlantic
crossing to Lisbon.

“In some ways it’s quite good,” he said. “It’s giving us
some downwind conditions so we’re kind of cutting the corner and
probably sailing a more direct route that we would have done if
the storm wasn’t there.

“The closer we can get to it the better, it will give us a
bit of a catapult out of the way.”

The 39,000 nautical mile race, which visits five continents
and four oceans during the nine-month round-the-world marathon,
is due to finish in Galway, Ireland on July 7.


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