Ditto that...no capital loss on a boat unless used as a business.
02-12-2008 08:04 PM
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.
02-12-2008 07:51 PM
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 .
02-12-2008 06:10 PM
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.