Owning a Sailboat - Tax Deductions..

[denverd0n]

Originally Posted by SpcAlan1

Well I paid cash for the boat.... so no interest.
so what you are saying IF I financed a boat that had a separate cabin, head, and galley you could write off the interest like my house, wow.

Yep, that's correct.

If you use the boat for business purposes then you could deduct a percentage of the expenses of maintaining it, to the extent that you use it for business. Similar to a home office, if you use the boat 10% of the time for business then you could deduct 10% of the expenses and depreciate 10% of its value.

And even then my guess is that the IRS would argue you are only using part of the boat. That is, entertain clients onboard? You don't use the berths when doing that, so--like with a home office--you have to determine what percentage of the boat you use, and what percentage of the time you use it, so maybe it is 60% of the boat used 20% of the time.

I would agree with MikeinLA, though, if you do this you should COUNT on being audited. Personally, for me, not worth it. The boat is where I go to get AWAY from business! I do take deductions for a home office, though, and have been audited as a result, so I'm pretty sure that the above is accurate.

[Mark1948]

You can always donate it to charity. Also, you can donate boat trips to legitimate charities as an auction prize, determine your expense and use that as a charatible deduction. Benefits - getting some deduction, making a contribution to a worthy cause and introducing other people to sailing.

[zeehag]

if here were a way to get credit for owning a boat and residing aboard i would have gotten that already---as i have done so since 1990----sorry...lol--become a business and use it for that and there is a possibility --maybe--but the taxes rise accordingly..homestead it and still in same situation as now---aint none...become a charity and mebbe ye can do it.....

[night0wl]

I wonder if one can use the $8000 first time home buyer credit (or the soon to be created $6500 move-up credit) to buy a sailboat...

Thinks that make you go hmm...

[speciald]

Till Obama finds out about it!

[jaschrumpf]

Only if you took out a mortgaged loan on it, just as if it were a second home.

Interest on a standard personal/car-type loan would not be deductible.