Putting sailboat into Corporation - Page 3 - SailNet Community
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post #21 of 35 Old 03-09-2010
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Originally Posted by US27inKS View Post
It's advertising. Larry owns the boat, then sells ad space and sponsorship rights to Oracle and BMW. No different than NASCAR or Indy. Big fat write offs that the IRS deems legit.
More importantly, I suspect the write offs are taken against an actual profit-making business. The other sure sign of a sham is when the write offs zero out (or exceed) the business's revenues.


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post #22 of 35 Old 03-09-2010 Thread Starter
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I am over this thread and it was clearly a bad idea... but I have one more question just out of curiosity...

If you form a company, put the boat into an company as a charter.... can you be the only one that charters it?
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post #23 of 35 Old 03-09-2010
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And given the size and scope of his company... he can afford quite a bit of writing off...

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post #24 of 35 Old 03-09-2010
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No... not without the IRS flagging you a dozen different ways.
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Originally Posted by zboss View Post
I am over this thread and it was clearly a bad idea... but I have one more question just out of curiosity...

If you form a company, put the boat into an company as a charter.... can you be the only one that charters it?

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post #25 of 35 Old 03-14-2010
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This is a bit dated, but very relevant... Many corporations write off boats.

Yacht owners enjoying a huge perk -- tax breaks
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post #26 of 35 Old 03-14-2010
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But few corporations are formed for the sole purpose of writing off a boat. See the difference?

Besides, if you;'re gonna form a corp to shelter the boat, why not go a step farther and register your cars through the corp, and then use them as "company cars," and write off the mileage. Buy a dog, and write off the purchase and food and vet bills as "security system installation and maintenance.' Instead of giving your kids an allowance for feeding the dog, hire them as security staff. When your kids go off to college in East Podunk, apply to the SBA for a business expansion, because the funding is required to open a branch in East Podunk. Buy a house with the expansion funds, rent junior a room, rent rooms to five of his buddies, , now write off the hiring of a new sales force as well....
If Bernie Madoff could keep churning his clients for three decades without getting caught, somebody might be able to pull this off.
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post #27 of 35 Old 03-14-2010
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as for my situ, i spoke to a lawyer about it first. the llc owns the boat, the llc was formed for the purpose of owning the boat, I am the sole owner of the llc. the llc paper work states the llc is not in the business of making money.

as far as delaware and maryland are concerned it is legal and is not a sham. not sure about other states. as I still have to pay taxes on any money the llc would/could/did not make. IIRC from the lawyer said its legal as long as no taxes are owed, and maryland does not have property taxes on boats and the boat is registered in maryland.

now the boat did have sales taxes paid when purchased, so there is no tax avoidance issues in any state. the fed tax id number is also legit, when tax time comes around money made by LLC is nothing, money spent by LLC is nothing. the one and only tax return by the llc ( so far ) , which is attached to my tax return did not get any extra attention from the feds. sole proprietors have the taxes attached to the sole owner.

now i would never do anything to try to avoid taxes, as i dont like fed attention. this is the same thing guys who own class 3 fire arm stuff do, only issue is if i sell the boat i will need to pay taxes on the sale and i cant hide em.

edit just looked at the llc paper work, it does state for reason of the the LLC " for ownership of sailing vessel and possible chartering of said sailing vessel " well sense i dont have a 6 pack yet i cant charter it yet, so no income. ins had no issue either, as i cant charter it and i am the sole owner. infact the ins was slightly cheaper because i was able to get it thru the same ins agent that ins my llc that has my electric license

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post #28 of 35 Old 03-14-2010
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It looks like Zboss' question was about incorporating his business and then having the boat in the business' name and entertaining clients with the boat. As long as the boat is used for business purposes 50% of the time, this is allowed. The corporation would not be created for the sole purpose of owning a boat, that was someone else's strategy for limiting liability - putting a boat in an LLC.
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post #29 of 35 Old 03-14-2010
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Quote:
Originally Posted by sailingdog View Post
Unless you have done something to intentionally harm the trespasser, there is little chance that you will be found liable for any injuries they sustain.
not in maryland, we get crooks who win lawsuits all the time here for when they get hurt breaking the law. one of the funniest i saw in the paper was a shoplifter who was running out of a store broke his nose on the door when it did not open fast enough. court gave him 5 grand, the store sued him for property damage ( broke the door ) and they won 5 grand, so it was a wash
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post #30 of 35 Old 03-15-2010
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Maryland has some truly idiotic laws.
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not in maryland, we get crooks who win lawsuits all the time here for when they get hurt breaking the law. one of the funniest i saw in the paper was a shoplifter who was running out of a store broke his nose on the door when it did not open fast enough. court gave him 5 grand, the store sued him for property damage ( broke the door ) and they won 5 grand, so it was a wash

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You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
a boat to the sea you don't love, she'll shake you off just as sure as the turning of the worlds. Love keeps
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—Cpt. Mal Reynolds, Serenity (edited)

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