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A boat bill of sale is a legal document that records the transfer of ownership of a vessel, which may be required for various state permit applications. It serves as evidence of the transaction and provides documentation for tax purposes. Key components of a boat bill of sale include the identities of the buyer and seller, the sale price, and the official date of the exchange. It's also advisable to indicate the location of the transaction, especially if the buyer and seller are in different states or if the boat is located elsewhere, as the relevant laws will apply based on where the boat will be docked.