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post #1 of 8 Old 01-01-2007 Thread Starter
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Tax Time

I would like to discuss any possible tax deductions that might be associated with owning a sailboat. I think the boat can be considered a second home. Thoughts?
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post #2 of 8 Old 01-01-2007
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Tax deduction, probably. Income deduction, definatly!
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post #3 of 8 Old 01-01-2007 Thread Starter
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post #4 of 8 Old 01-01-2007
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Yes...sailboats with head and galley may be treated as a second home, letting you deduct interest paid on any loan outstanding. If you own the boat outright you're outa luck! So...buy a bigger boat than you can afford and finance it!
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post #5 of 8 Old 01-01-2007 Thread Starter
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Let's say I sold a rental property, and bought a sailboat in the same year. I wonder if there is some way to associate the two to avoid some of the capital gains tax on the sale of the rental property. For instance if I offered the boat for bare boat charter would that qualify as a "rental" in terms of "like investment"?

Also, shouldn't the registration (sales) tax be income deductible?
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post #6 of 8 Old 01-02-2007
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I'm not trying to hijack this thread, but I have some questions too. Do you have to have a "marine" loan to get the tax deduction on interest? What if you simply took a personal loan to purchase the boat instead?
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post #7 of 8 Old 01-02-2007
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There is an artice in the latest Boat US mag. According to the article, (not me) you can deduct the interest even if it is a private loan from an individual. The tax form asks for the tax id # of the institution or the SS# of the individual.
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post #8 of 8 Old 01-02-2007
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According to the IRS, you can only deduct the interest if the loan is secured with the boat i.e. if you default, the boat is sold off to pay your debt.

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