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A boat bill of sale is a legal document that records the transfer of ownership of a vessel, essential for completing state-run permit applications and serving as proof of transaction for both parties. It should include the identities of the buyer and seller, the sale price, and the date the sale becomes official. Additionally, noting the location of the transaction is advisable, especially if the buyer and seller are in different states or if the boat is located elsewhere at the time of sale. The applicable law will be the state where the boat will ultimately be docked. This document is valuable for tax purposes and confirms the legitimacy of the sale.