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A boat bill of sale is a legal document that officially records the transfer of ownership of a vessel or watercraft. Its requirements can vary by state, and it may be necessary for completing various state-run permit applications, regardless of docking location. This document serves as proof of transaction for both parties and provides necessary documentation for tax purposes. A boat bill of sale should include the identities of the buyer and seller, the sale price, and the date of the exchange. It is also advisable to specify the location of the transaction, particularly if the buyer and seller are in different states, as the relevant laws will apply based on where the boat will ultimately be docked.