Join Date: May 2007
Location: Boerne, Tx
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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.