Owning a Sailboat - Tax Deductions.. - SailNet Community
Reply
 
LinkBack Thread Tools
post #1 of 16 Old 11-12-2009 Thread Starter
Senior Member
 
Join Date: Aug 2009
Posts: 270
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 7
 
Owning a Sailboat - Tax Deductions..

Are their any tax benefits of owning a salboat?
I own a 1978 Catalina 25.

What is a way ( legally ) that I can use the boat somehow to reduce taxes?

Someone said start a business, claim the boat as depreication, and claim 'some' income, but you could write off the marina slips fees.. is that possible?

I suppose there are something to is because the CPA guys said it could be a second home.

Any ideas?
SpcAlan1 is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
Advertisement
 
post #2 of 16 Old 11-12-2009
Telstar 28
 
sailingdog's Avatar
 
Join Date: Mar 2006
Location: New England
Posts: 43,290
Thanks: 0
Thanked 15 Times in 12 Posts
Rep Power: 14
         
A boat can be considered a home, provided it has a permanent galley and head setup. Porta-potties and camping stoves do not cut it...

Sailingdog

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

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)

If you're new to the Sailnet Forums... please read this
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
.

Still—DON'T READ THAT POST AGAIN.
sailingdog is offline  
Quote Quick Reply Share with Facebook
post #3 of 16 Old 11-12-2009
Unpaid Intern
 
josrulz's Avatar
 
Join Date: Oct 2006
Location: Maryland
Posts: 990
Thanks: 0
Thanked 2 Times in 2 Posts
Rep Power: 9
 
On this subject, and SpcAlan1 I do not mean to hijack your thread here, does a composting toilet count as a "permanent head" for tax purposes? Something like the Airhead or Nature's Head, I would consider permanent, since you're not carrying it out of the boat every couple days, and it stays in all season along with the waste/composting material.

Any thoughts on whether the IRS would see it that way?

By the way, PLEASE let's not go down the road of debating types of heads. I was just wondering, in line with SpcAlan1's original question, if a composter would "count".
-J

1984 Sabre 34 Mk I
josrulz is offline  
Quote Quick Reply Share with Facebook
post #4 of 16 Old 11-12-2009
STARBOARD!!
 
KeelHaulin's Avatar
 
Join Date: Mar 2006
Posts: 1,662
Thanks: 0
Thanked 2 Times in 2 Posts
Rep Power: 11
   
The vessel would need to be licensed as commercial; USCG certified, and you would need to have an OUPV (Six-Pac) and run the boat as a for charter operation. All of that said you could then deduct for business expenses and cost but you can only do that for so long (3 years) before your business must show a profit. You might be able to claim depreciation; but boats that are maintained (as a charter boat would need to be) carry a market value. A '78 catalina 25 is probably fairly stable in market value (already fully depreciated).

Otherwise; if you live-aboard deduction for rent-paid and a percentage of credit for property tax is about all you can claim (that I know of).
KeelHaulin is offline  
Quote Quick Reply Share with Facebook
post #5 of 16 Old 11-12-2009
Senior Member
 
Join Date: Oct 2009
Location: Toronto
Posts: 188
Thanks: 0
Thanked 4 Times in 4 Posts
Rep Power: 6
 
What if you own your own business and use the boat for entertaining clients? That's one thing I'll be doing if I ever get a boat. I never considered the possibility of it being an expense though.
Ninefingers is offline  
Quote Quick Reply Share with Facebook
post #6 of 16 Old 11-12-2009
Senior Member
 
MikeinLA's Avatar
 
Join Date: Jul 2006
Posts: 517
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 10
 
Quote:
Originally Posted by SpcAlan1 View Post
Are their any tax benefits of owning a salboat?
I own a 1978 Catalina 25.

What is a way ( legally ) that I can use the boat somehow to reduce taxes?

You should be able to deduct the personal property taxes in any event. If you live aboard or the boat qualifies as a second home, I believe you can only deduct the loan interest, but not the slip fees and expenses. If you entertain clients on your boat, it will be much like business lunches. You should be able to document the time used, who was there, what business was discussed, etc. I believe you will have to calculate the percentage of business use versus personal use.

Someone said start a business, claim the boat as depreication, and claim 'some' income, but you could write off the marina slips fees.. is that possible?

This seems to run contrary to your original desire to be legal about it.

I suppose there are something to is because the CPA guys said it could be a second home.

Any ideas?

Yes, get ready for an audit.
Mike
MikeinLA is offline  
Quote Quick Reply Share with Facebook
post #7 of 16 Old 11-13-2009 Thread Starter
Senior Member
 
Join Date: Aug 2009
Posts: 270
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 7
 
OK, so basically.. There are not any 'true' tax benefits from owning a sailboat?

Oh well.
SpcAlan1 is offline  
Quote Quick Reply Share with Facebook
post #8 of 16 Old 11-13-2009
Senior Member
 
Join Date: Nov 2002
Location: New York
Posts: 5,829
Thanks: 0
Thanked 18 Times in 17 Posts
Rep Power: 15
     
I know of professional people, claiming boats a 2nd "office" as they do work on the boat. MD"S, Lawyers, etc.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Never Forgotten

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
bubb2 is offline  
Quote Quick Reply Share with Facebook
post #9 of 16 Old 11-13-2009
Senior Member
 
HerbDB's Avatar
 
Join Date: Sep 2000
Location: Eastern Pennsylvania
Posts: 203
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 15
 
Actually, I think you are getting some bad information here, however good intentioned. Here is what the IRS pub actually says:

Qualified Home

For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.


My Catalina 25 had a portapotty that was designed to attach on one side of the head with the sink on the opposite side. It also had a built in galley stove and sink.

This is in my opinion not the same as sticking a portapotty and a camp stove on a 20 foot sailboat with a bunk in a cuddy cabin.

If you have a loan on the boat, take the interest deduction.

Herb DuBois
Beneteau 36CC
Split Decision
HerbDB is offline  
Quote Quick Reply Share with Facebook
post #10 of 16 Old 11-13-2009 Thread Starter
Senior Member
 
Join Date: Aug 2009
Posts: 270
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 7
 
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.
SpcAlan1 is offline  
Quote Quick Reply Share with Facebook
Reply

Quick Reply
Message:
Options

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

Password:


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

Email Address:
OR

Log-in









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
boat purchase, taxes, residence -- help for NW sailer? winslow59 Boat Review and Purchase Forum 15 01-14-2007 10:20 PM
Tax on boats brought to Florida from RI? faithab General Discussion (sailing related) 8 02-22-2006 07:18 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