Capital Gains / Taxes - SailNet Community
LinkBack Thread Tools
post #1 of 4 Old 02-12-2008 Thread Starter
Senior Member
punjabi's Avatar
Join Date: Jul 2007
Posts: 168
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 9
Capital Gains / Taxes

I was reading another thread that was discussing taxes and it got me wondering...

I know that if I take a loan on a boat, I can deduct the interest as the boat is a second home (head and galley). Does that also mean that any capital expenditures I make on the boat (equipment, sails, anything really) can be used to increase my cost basis? If that's the case, I would imagine you could generate a huge capital loss over the time you own the boat as you will sell it for less than you paid (plus any expenditures).

So if I buy a boat for $25k and spend $25k on it over the time I own it and then I sell it five years later for $15k, I will have a capital loss of $35k to offset gains on a regular home.

Am I right?
punjabi is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
post #2 of 4 Old 02-12-2008
Senior Member
Join Date: Nov 2007
Location: Alaska
Posts: 260
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 9
Pun ..

Check with your accountant on this ,most every state is different .
Thats what I understand ...if its got a sit down and a place to cook its # 2 home sweet home .
I would not go by hear say . Ive built all my homes but the first three , owned machinery ..hoes ,dozers ,dump trucks ... I cant get started !

The best thing when you get your taxes done is to ask. most people will find out for you even if they arnt sure. is my experence !
Great question .
Danny33 is offline  
Quote Quick Reply Share with Facebook
post #3 of 4 Old 02-12-2008
Senior Member
Join Date: Jul 2001
Posts: 1,174
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 15
My first reaction is do you really want tax advice here?
Having said that, for personal-use capital assets, such as a personal automobile or boat, a capital loss is not deductible. Pretty intuitive.
k1vsk is offline  
Quote Quick Reply Share with Facebook
post #4 of 4 Old 02-12-2008
camaraderie's Avatar
Join Date: May 2002
Location: East Coast
Posts: 13,877
Thanks: 0
Thanked 5 Times in 5 Posts
Rep Power: 16
Ditto capital loss on a boat unless used as a business.

No longer posting. Reach me by PM!
camaraderie is offline  
Quote Quick Reply Share with Facebook

Quick Reply

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

Register Now

In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Similar Threads
Thread Thread Starter Forum Replies Last Post
Classics Sailboat show biggest US event for Beneteau, - Annapolis Capital NewsReader News Feeds 0 10-08-2006 12:15 PM
What's new in nautical Dealers showcase latest sailing technology ... - Annapolis Capital NewsReader News Feeds 0 10-07-2006 02:15 PM
New to the fleet - Annapolis Capital NewsReader News Feeds 0 10-07-2006 12:15 PM
Boats and Taxes Sharlyn Boat Review and Purchase Forum 2 05-03-2002 12:04 PM
Consolidating Gains on the Racecourse Dean Brenner Racing Articles 0 07-01-2001 09:00 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome