On July, 18, 1998, about 1540 eastern daylight time, a Cessna A185F, an amphibian, N1481F, was substantially damaged during a collision with water after takeoff from the Smith Mountain Lake, Moneta, Virginia. The certificated private pilot and two passengers were not injured. Visual meteorological conditions prevailed and no flight plan had been filed for the local flight conducted under 14 CFR Part 91. In a written statement, the pilot said he left the dock and water taxied to a location on the lake to permit a takeoff without interfering with boat traffic. He further stated: "..The aircraft commenced a takeoff run, which was normal. Shortly after departure, the aircraft did not seem to be climbing at a normal rate. Trees and a hill lay ahead along the intended departure path, a path that clearly seemed sufficient at the time of takeoff, and it was not certain that the aircraft would climb fast enough to clear the tree tops. I elected to remain over water, which necessitated a moderately steep right turn. During the turn, the aircraft went into a high speed stall. I attempted to recover by lowering the nose, but there was not sufficient altitude. ..." The airplane's right float contacted the water, it then cartwheeled, flipped over, and sank. In an interview with a Federal Aviation Administration Inspector, witnesses who were flying in an airplane above the lake, said they observed the airplane lift off the water and begin a slight turn to right. It then impacted the water. The airplane was recovered from the lake on July 23, 1998. Examination of the wreckage by an FAA Inspector did not disclose evidence of any mechanical malfunctions of the airframe or engine. Both wings were separated from the airplane.