Reward for lost Kraken!
Join Date: Apr 2006
Thanked 131 Times in 128 Posts
Rep Power: 11
"isn't this what insurance is designed to cover? Don't all marinas require this insurance?"
No, they usually require liability insurance up to a fairly low amount, 1/4 million perhaps. But if someone gets drunk, falls overboard and drowns, the wereguild for one death can easily run $3.2 million dollars (typical FAA accounting) so you'd need liability coverage in excess of 3 mil assuming you had any other assets--or anticipated income during the next 20 years.
John, renting and leasing back and forth is exactly what gets corporations declared shams. Everything about all aspects of the business has to be "arms' length" and handled on the open market at market prices and market terms. Setting yourself up on a sweetheart deal with no competition, no bids, no other parties involved--won't impress the tax men.
Start a church on the boat, be the liveaboard pastor, make sure everyone is invited to come congregate and pray multiple times a week and then "experience the glory of the gods" at sea. THAT you can do legally, but you'll still have to give away the value of the boat (to the church) and your corporate bylaws will have to ensure it still gets given away to another non-profit group, never to come back to your pocket. Not so perfect, huh?