Join Date: Sep 2002
Thanked 0 Times in 0 Posts
Rep Power: 0
A second home has the same benefits a first home has as far as the IRS. Unless you are also chartering the boat and making it a business, you cannot depreciate it. It will depreciate itself, but you get no benefit from that from the IRS. Hey, be happy you can afford the boat, don't look for the government to help you much on this one. It is a luxury you know, but no longer taxed as such.
Even as a charter, you have to have other passive income to offset to get benefits from depreciation. In the charter business, it is the same as owning any other boat: Unless you have other passive income to offset with your losses(and unless you are in the BVI's you will have losses), the happiest day is the day you sell the boat (business) and then you can claim the depreciation. Big payday then!
Oh, and unless it is a business, your slip fees are not deductible as part of the second home mortgage unless you actually buy the slip. Then of course you can deduct the mortgage interest and taxes on the slip. I used to break up laughing at friends that said I was so lucky to be able to deduct my car as a business expense. Hey, I think I wrote a check for that car they think is free.
Last edited by tommyt; 12-22-2007 at 12:14 AM.