In these situations we would do what is considered a “Bargain Sale” in which we would handle the donation process the same way. The only difference is we would come to a formal agreement regarding what percentage of the boats value you would want to receive vs. what percentage would be donated. In most cases we can do bargain sales for up to 25% of a boats value. Your 1098-C form would then show the “Sale Price” of the boat as well as any compensation you received for the boat. The donation value then is equal to the “Sale Price” – “Compensation Amount.”