Putting sailboat into Corporation - Page 4 - SailNet Community
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post #31 of 35 Old 03-15-2010
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I am not familiar with all the various corporate laws/structures.

I do not believe that an LLC will shield your personal assets in a lawsuit.

I do not believe that you can charter...to yourself....

If your goal is to be able to write down some of the boat expenses, and since you seem willing to take people out on it. You might get a 6 pack license, start a charter company, and take passengers for hire. That may allow you to write down the expenses, and any memberships, educational classes etc.

You may need a CG license, anyway, if you were taking your wife's clients out since there is an implicit business use.

IF you do nothing with regard to business use... and the vessel has a head, a galley and a berth, you can write off an interest from a boat loan as a " second home"

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post #32 of 35 Old 03-15-2010
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Quote:
Originally Posted by Tempest View Post
I am not familiar with all the various corporate laws/structures.

I do not believe that an LLC will shield your personal assets in a lawsuit.

I do not believe that you can charter...to yourself....

If your goal is to be able to write down some of the boat expenses, and since you seem willing to take people out on it. You might get a 6 pack license, start a charter company, and take passengers for hire. That may allow you to write down the expenses, and any memberships, educational classes etc.

You may need a CG license, anyway, if you were taking your wife's clients out since there is an implicit business use.

IF you do nothing with regard to business use... and the vessel has a head, a galley and a berth, you can write off an interest from a boat loan as a " second home"
IIRC, to write the interest off as a second home, the following conditions must be met: The boat must have a permanently installed head and galley stove. The loan must be secured with the boat as the collateral.

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—Cpt. Mal Reynolds, Serenity (edited)

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post #33 of 35 Old 03-15-2010
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Sailing Dog,

I'm not sure what you're clarifying?....here is the quote from the Irs page.



Qualified Home
For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

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post #34 of 35 Old 03-15-2010
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Yes, but a porta-potty and camping stove don't qualify, as they are not permanently installed and if they're not on the boat, the boat's loan interest can't be written off... The IRS isn't stupid... and isn't going to allow someone to buy a big expensive daysailor with a cuddy and have them claim it as a second home by putting a porta-potty and camping stove on it.

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Sailing Dog,

I'm not sure what you're clarifying?....here is the quote from the Irs page.



Qualified Home
For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

Sailingdog

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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
her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.

—Cpt. Mal Reynolds, Serenity (edited)

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post #35 of 35 Old 03-15-2010
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"now i would never do anything to try to avoid taxes,"
Scotty, i think you've been grossly misinformed. Tax avoidance, as every IRS agent and every tax court will tell you, is entirely legal.
Tax evasion is criminal.

Big big difference between the two. Tax avoidance consists of very carefully following the rules and toeing the lines. Tax evasion happens when you cross the lines and break the rules.

If you have a lawyer who is willing to stake his malpractice rates on advice he's given you about tax shelters and your boat...great! The devil always lies in the details and the rest is between you and him.
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