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  #11  
Old 12-22-2007
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I call dibs on your boat when they put in Club FED...
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Originally Posted by teshannon View Post
Yes, a medical deduction! I like that. I'll let you know how I make out.
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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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  #12  
Old 12-22-2007
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Smile

I'm sure when I tell them Freesail said it was ok they'll let me out.
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  #13  
Old 12-22-2007
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Umm... sure...yeah, that'll work... I still call dibs on your boat...
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I'm sure when I tell them Freesail said it was ok they'll let me out.
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Telstar 28
New England

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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  #14  
Old 12-22-2007
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I'm sure when I tell them Freesail said it was ok they'll let me out.


Yes, yes, be sure to say "freesail", as we're "friends" from way back.....
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  #15  
Old 02-02-2008
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should the bank be sending me an "interest paid" document before tax time. Also, do any of the initial sales taxes come into play for the state? I bought in MD, but was defered there to pay and register in NJ and paid them for the sales tax.
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Old 02-02-2008
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Tax deductions for boat second home

There are two issues here: What you are entitled to do, and secondly, what it will cost you to do it. You probably are entitled to deduct the interest. However doing so is likely to catch the attention of the IRS review program. If it does, then you may well be subjected to an IRS audit. Even if it is a limited audit, that wil be a major case of proctodynia. You will be asked for all sorts of documentation. and probably will hve to hire a CPA or attorney to represent you in the audit. Who knows what else they will turn up in the audit. Even if you are entitled, and prevail in the audit, do you really want to run risk of this major hassle? Calculate out how much tax you would save anyway before deciding.
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Old 02-02-2008
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I paid interest on the loan for my last boat from 1994 till 2002. I deducted the interest every year along with our home loan interest. It is perfectly legal as defined by the govt. I also deducted the registration fee every year. Also legal by govt definition. Sales taxes are also deductable.

I've not been audited for this.

All audits are not the same.
We've had 2 audits in our lifetime. Both were simple inquiries from the irs via letters only, asking for explainations of certain issues. We had legitimate explainations we spelled out in a written response and were sent a written answer accepting the explaination. Not all audits are draconian in nature. We weren't dragged down to the offices and put under hot lights. the irs has better things to do in many situations.
There are millions of boat, cottage & RV owners taking the second home deduction. It's not some looney scheme that attracts attention.

Now a home office deduction...that's a red flag!
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Old 02-02-2008
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Xort has it right.
1. Loan interest on a boat (with head,galley and sleeping quarters) is deductible as a second home mortgage interest and is NOT a red flag.
2. Sales tax can also be deducted but only if you don't take the standard deduction available...so it may or may not be to your benefit to do so depending on the size of the bill.
3. A "home office" deduction for a portion or all of the space on your boat IS a red flag and you better have your ducks in a row to comply with the requirements of this deduction if you claim it.

...and yes KPTMorgan....you should get an annual interest statement for the calendar year of 2007 from your lender and you should have it by now. Worth a follow up with them.
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Only In America, we don't even have the luxury on our homes. We only get a break when you sell as there is no capital gain if its your home. Some folks are using the home as leverge to put money into investments where interest is deductable.
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Old 02-02-2008
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Quote:
Originally Posted by kptmorgan04 View Post
should the bank be sending me an "interest paid" document before tax time. Also, do any of the initial sales taxes come into play for the state? I bought in MD, but was defered there to pay and register in NJ and paid them for the sales tax.
Mine just came this week so you should be getting yours soon I assume.
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