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A boat bill of sale is a legal document that records the transfer of ownership of a vessel. Depending on the state, it may be required for various permit applications. Bills of sale serve as proof of transaction and provide documentation for tax purposes. Key components include the identities of the buyer and seller, the sale price, and the date of the exchange. It's also advisable to note the transaction location, especially if the buyer and seller are in different states or if the boat is located elsewhere at the time of sale, as the relevant laws will apply based on where the boat will end up.