Depreciation refers to the fact that the value of all goods decreases as they age. "Depreciating" the value of assets refers to showing that loss on your balance sheets, or on your taxes if the tax code allows you to do that. For instance, a corporation that buys a new masonry and steel building, or a thousand miles of transmission wires and towers, cannot just write off the "cost" of that all at once. They are tradiitonally allowed to "depreciate" the cost over a 40-year period. (In some cases less.)
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Are you saying that depreciation still applies to non-business owners? E.g. people with no business set up? Maybe things are different in the US but up here in Canada balance sheets, incorporations, etc., are generally for businesses. Do you write off your house, for instance, or things which aren't related to your business?
I am thinking some people here are confusing the depreciation of a boat to the resale value of that boat. If you buy a boat for $100,000.00 and sail it away, sure it depreciates instantly as a used boat. And each year it continues to depreciate by some amount. This is NOT a tax deductible expense (unless your boat is set up as a business in USA). But for those who feel compelled to put a dollar value on their passion of sailing the have at it. Myself, I buy the boat I can afford and sail it. If and when I decide to sell my boat I will dig up the resale value; until then It is my boat and that's all that matters. Now I do struggle with recurring expenses like slip fees, yard fees for haul outs, new sails, engine repairs, dock lines and the ever constant upgrades (I am buying new ST winches this year), etc. Those expenses are real and do cost a bundle. My suggestion is if you are they type of person who feels compelled to put a dollar amount on your sailing, either charter or crew on a friend's boat, its way cheaper annually.
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Joe McCary,
Sailing on The Central Chesapeake Bay, West River, MD on my Catalina 27, Aelous II with my wife and friends.
Sailing Blog: www.aeoluswestriver.net
I have investment money and I have disposable (and I do mean disposable) income and I don't mix the two. I agree with you that buying a boat is not a good investment strategy unless you are a salvor but I'm willing to forgo other pleasures to sail. By the way, sailing is good exercise and good health is about the best investment a person can make; just sayin...
I took accounting in college and you guys are killing my brain cells.
Here is how I see it.
My boss is an idiot, pays me squat, I get frustrated at not being in control. Everyone tells me "Don't do this, don't do that!"
For the prie of sailing ($1600 slip fees...$800 on the hard fees...$200 in diesel fuel...$200 in repairs ((at least SOME repair per year)..total = $2800
To be out in the wind, in control, away from the Marina Moron, the crap of society, the ills of no retirement, and all the rest of the **** life offers...then to me sailing is priceless....
"What a ship is, you know, it's not just a keel and a hull and a deck and sails, that's what a ship needs. But what a ship is,... really is, is freedom." -Johnny Depp, as Captain Jack Sparrow
Pirates of the Caribbean-
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Joe McCary,
Sailing on The Central Chesapeake Bay, West River, MD on my Catalina 27, Aelous II with my wife and friends.
Sailing Blog: www.aeoluswestriver.net
Stop trying to figure out how much it will cost, how fast it will depreciate or what will it cost to keep it up - if you want a boat, buy it and enjoy it. That's what you all do with cars - pay big bucks, drive it off the lot and lose your ass. Keep trading cars and you'll keep losing your ass. My theory is buy the car and boat you want and keep it for so long that cost and depreciation don't matter. I bought my '84 300CD Mercedes new in Nov '84 for $36,630 - is it worth that now - of course not - have I gotten my money's worth after 25 years - yep!! I bought Paloma many years ago for a lot of money - is she worth the big $$$ no that she's 30-years old - of course not - have I gotten my money's worth -yep!!
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s/v Paloma, Bristol 29.9, #141
Slipped in Bahia Marina, easy access to Corpus Christi Bay and the Gulf of Mexico.
Last edited by johnshasteen : 03-11-2009 at 01:49 PM.
