Join Date: Apr 2006
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I don't think it has anything to do with the lender being more or less willing, but rather whether the lender knows what they are doing.
In case you haven't heard there is this stock market "adjustment" and failure of some mortgage markets going on right now, because so many big lenders had no idea who they were lending money to.
Same same for boat lenders. A marine lending company, a credit union, a savings bank, a mortgage loan company, maybe your local loan shark?...All may be giving out "boat" loans and sometimes all they know is that it is a secured loan, with no concept that you want to take mortgage deductions for living on it.
From what the IRS said, if the lender doesn't give you the right form--then all you have is a secured loan, not a mortgage, and you can't take the mortgage deductions without having the right form on file for the IRS.
For instance, in theory I could charge an older cheaper boat to the foolishly large line of credit on my credit card. And then, immediately transfer that balance due to a new credit card which is offering me "zero percent APR for life on all balance transfers made in the first 90 days". Effectively, I could get the boat loan for ZERO PERCENT INTEREST. But since it would be a "credit card retail purchase"...there's no IRS form, no one at the cc company has any idea what form I need, and the IRS probably would argue about the deduction.
I honestly did get a "zero percent for life" invitation in the mail today....and there's a devil on my shoulder saying gee, this could be interesting.