Here's my question. Is there a problem between overlapping the joint on the winch mount instead of a butt joint? Are there any issues in either?
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Well, welding is WEIRD if you're used to, say, woodworking. Overlap like that would be the ONLY way to do it if you were using 2x4's.
However, with welding, the two pieces of metal essentially become one, and so for all intents and purpose are just as strong. It's freaky, but if the welds are good, it works.
Now, in your case, I donno. If I understand your picture, the extra thickness would be good, but I worry about being able to weld appropriately to get good penetration. You'd need to weld along the same edge as your butt joints, plus along the outer edges of the red piece... basically, you'd want to weld the squares formed by the overlap, if that makes sense.
If you were woodworking, you'd glue mating faces of the overlap, right, and that's the one thing you can't do with welding; you can only weld the edges.
If it were me, I'd butt joint it -- as said before, bevel the edges and leave a small gap so as to burn that sh!t good -- and if you want extra thickness, put a piece of square tube or C-channel across the back for reinforcement.
I hope this makes sense, and again, a master welder and fabricator I am not, just a hobbyist, so take what I say with a grain of salt and no offense
-- A