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A boat bill of sale is a legal document that facilitates the transfer of ownership of a vessel or watercraft. Depending on the state, it may be required for state-run permit applications. Bills of sale serve as proof of transaction and provide documentation for tax purposes. Key elements of a boat bill of sale include the identities of the buyer and seller, the sale price, the date of the transaction, and the location of the sale. If the buyer and seller are in different states, the laws of the destination state for the boat will apply.