Boat as Second Hone Tax Advantage? - Page 2 - SailNet Community
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post #11 of 21 Old 07-24-2007
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Nobody covered it, but there are criteria to qualify a boat as a second home. I have not looked at them in a while, but you had to meet certain low level criteria of being able to sleep on board, a head, etc. Used to be a certain number of overnights but I think they gave up trying to prove or disprove that one. So, a 26' cruiser could easily qualify, and a Sunfish would be a stretch.
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post #12 of 21 Old 07-24-2007
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depreciation

depreciation is a whole other ball of wax. Depreciation only is deductible when you use the asset in question (in this case, a boat as a second home) when it is used in the course of a business. So, depreciation can be taken if you are a charter captain taking out paying guests, using the boat in a commercial fishing operation, renting the boat out to paying guests, etc. There is no depreciation expense on a boat used solely for recreational purposes.
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post #13 of 21 Old 07-24-2007
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So depreiation Can't be written off will using the boat at as a second home? What if you do computer work aboard. Landlubbers need to quarden off a given area as a home office or take a standard deduction. From What I understand.
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post #14 of 21 Old 07-24-2007
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ScrimpandSail,

You can't deduct depreciation on a house that is a second home either. You could stretch that to a percentage (very small) of the property and a percentage of the time you were there, but in the end you save little and the flags go up on your tax return. Just how close to you want the Feds to be looking at your return? Can you save enough to cover the cost of an accountant going to the review with you?

As to the deduction on a charter boat, there is a tax law that says you have to make a PROFIT somewhere along the way to consider it a business venture. Unless you have other passive income to offset your losses in the charter business you can't take the depreciation there until you SELL the business. However, you can offset your income with the mortgage and other expenses for the boat.
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post #15 of 21 Old 07-24-2007
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I'm sorry. I swedged two concepts. If your doing home office work (home office specifically), And the boat is my sole residence, Could I take the home office deduction afforded to soil based homes?
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post #16 of 21 Old 07-24-2007
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If depreciation is tax deductible when a "vehicle" is used for conducting business, and if I manage to sail my boat past each of my many coastal design projects to inspect the progress - each and every time I take it out, wouldn't that use qualify boat depreciation as a legitimate business deduction?

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post #17 of 21 Old 07-24-2007
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Not sure about depreciation TB, but I think mileage is sure deductible.
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post #18 of 21 Old 07-24-2007
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Sorry guys, I don't live close to the edge any longer.

If the boat is your only home, and you can find enough room for an office, it could work.

TB, if you sail past each of your projects every time you go out...you need to expand your horizons. Good luck with that one.
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post #19 of 21 Old 07-24-2007
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I'll have to remember to keep a "written record" in my nautical milage logbook.

Hmmm . . . there may be other business deduction possibilities here - maintenance expenses, vehicle storage (marina slip) reimbursement, client entertainment expenses.

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post #20 of 21 Old 07-24-2007
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When I was saying "I swedged two concepts" I meant forget the depreciation angle. I was at the last post, Just interested in the home office deduction. I should have been more clear.
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