|Topic Review (Newest First)|
|11-20-2006 10:25 PM|
|sailingdog||Actually, I don't believe that having toilet facilities is enough...they have to have a permanent marine head, as opposed to a portapotti. IIRC the boats with portapotties don't qualify as a second residence. Loan payments, marina fees, maintenace are part of the cost of ownership and as such are not generally deductible. Marina fees and maintenance are deductible if the boat is used as a rental property...but you'd probably lose the secondary residence tax deduction.|
|11-20-2006 10:05 PM|
Little Chance of Change
The only suggestions to eliminate the deductibility of interest on second homes (that I've seen) have been associated with consumption tax or flat tax proposals. With the recent democratic victories in Congress, I wouldn't expect to see any such tax implemented in the near future.
Also, most boats that qualify (as well as expensive second homes) are manufactured and located on the east and west coasts -- both areas that generally go heavily for democratic candidates. Representatives from these states remember what the short-lived luxury tax did to the boating industry, and realize that the loss of deductibility of interest on second homes would seriously impact two important local industries.
Just my opinion.
|11-20-2006 08:11 PM|
|Gene T||For what it's worth - Interest is currently deductible as stated, but congress has discussed eliminating the deduction. It did not have enough support last year, next year may be different.|
|05-02-2002 07:41 PM|
The IRS eliminated the minimum stay portion of the requirement for a boat to qualify as a second home. It simply has to have the ability to accommodate you overnight (bunks, head, galley) and the mortgage (loan) needs to be secured by the boat.
|04-25-2002 02:50 AM|
It qualifies for interest deduction but often you have to request a year-end statement of interest paid as your lender may not do this automatically (as John above states). My sales tax in NY was not deductable (anymore)according to my accountant. There are some other expense items you can deduct if your business directly involves use of the boat. Check with your accountant. Search for Moby Dick in the hopes of writing a novel may not qualify.
|04-22-2002 01:17 PM|
Quite true. You can find the exact rule on the IRS site.. it is searchable. Ask your bank or loan company for a copy of the IRS form (1099 or 1098, I forget at this moment) that states your interest. For a boat loan... they generally will not send this automatically at the end of the tax yr.
|04-22-2002 10:42 AM|
Sailboats can be treated as a second home if they have sleeping, eating, cooking, and toilet facilities. There is a requirement that you spend some number of nights sleeing onboard (I believe it is a minimum of 10 nights but you''ll need to verify that number.) If you qualify the interest on your boat loan is deductible. If you itemize then I think the state sales tax is deductible as well. Marina fees and maintenance does not count.
|04-22-2002 09:52 AM|
Until the experts chime in, I''ll state that everything I have read about this indicates that only the interest on the loan you might have would be deductible on your federal taxes (assuming your boat has sleeping accomodations, a toilet, and cooking facilities).
I don''t believe (but am not entirely sure) that you can write off any other costs, unless the boat is used as a business, which is not part of your original question.
|04-22-2002 09:31 AM|
Does anyone have info about how a sailboat can become a second Home, e.g. can Loan payments, taxes, marina fees, maintenance cost get the write off?