I am entertaining the purchase of a Hatteras that has been donated to a charity foundation.
The only option is lease to own (title in 3 years). I plan on making full payment upfront and keeping the boat for over 3 years so it shouldn't be a problem. I was told that I can get out of the lease as long as I find a purchaser to assume the terms (which means if I paid everything upfront), then the new owner would have to wait until the initial 3 years are up to get the title.
Any advise from fellow boater would be highly appreciated, whether you were aware about such arrangements or not.
Thanks
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Thread: Lease to Own Older Hatteras
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10-14-2016 01:25 PM #1Senior Member
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Lease to Own Older Hatteras
Last edited by Gusshr; 10-14-2016 at 02:51 PM.
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10-14-2016 03:01 PM #2Senior Member
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Re: Lease to Own Older Hatteras
I've heard that these kinds of deals are fairly common....but I personally would only do it after it was completely checked out and "blessed" by a competent admiralty lawyer. You could probably get a good deal on this boat but just be sure to keep your camel tied tightly in the process.
Walt
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10-14-2016 03:09 PM #3Senior Member
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Re: Lease to Own Older Hatteras
It sounds like a novel way to get around IRS requirements for taking a deduction after donating a boat. If it is sold within 3 years of the donation, the donor only can declare the actual amount for which it sold. If the charity "holds" the boat for at least 3 years, the donor can take the entire amount that he declared it to be worth.
Makes me wonder...Could I "donate" my boat to a charity for $250,000, take the deduction, then "lease to Own" it back for $50,000 over a 3 year period?Everyone should believe in something - I believe I will go fishing - Henry David Thoreau
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Re: Lease to Own Older Hatteras
I would consult a yacht broker who is familiar with these kinds of deals, and NOT the one who is selling the boat, no matter how good he or she is. You want someone without a dog in the hunt to give you an expert opinion.
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Re: Lease to Own Older Hatteras
Jack Sardina
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10-14-2016 04:41 PM #6
Re: Lease to Own Older Hatteras
Also, who has the "title" or ownership during the "lease" term? We know it's not in the name of the "lessee" so is it still in the name of the charity and could the charity go toes up or get into trouble or just go away while holding the title?
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Re: Lease to Own Older Hatteras
Last edited by SeaEric; 10-14-2016 at 04:49 PM.
Eric
41TC 1966 Hull #53 "Requisite"
Kent Island, MD/Ft. Lauderdale, FL
"Though she creaks - She holds"
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Re: Lease to Own Older Hatteras
I'm wondering if this is the same boat discussed in this thread: http://www.samsmarine.com/forums/sho...crane-Question
Eric
41TC 1966 Hull #53 "Requisite"
Kent Island, MD/Ft. Lauderdale, FL
"Though she creaks - She holds"