How do you write your hobby off to your business?
03-19-2013, 06:37 PM
#21
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In fl, commercial registration costs the same as personal. However, insurance becomes a new game....as in cost goes up.
I have several....and do rent them. However, I boat for free. Test and tune, repair test, rent prep. They all cut into the bottom line, but ultimately...it is a win win. At the end, you net less on your Corp filing but continue to reap the rewards of income from the llc as well lower tax on the Corp. Yes, you then pay on income from the llc, but consider it found money...
Oh....and it's legal.
I have several....and do rent them. However, I boat for free. Test and tune, repair test, rent prep. They all cut into the bottom line, but ultimately...it is a win win. At the end, you net less on your Corp filing but continue to reap the rewards of income from the llc as well lower tax on the Corp. Yes, you then pay on income from the llc, but consider it found money...
Oh....and it's legal.
You are talking charter.....
I believe that the original poster is talking about trying to transfer some of his boating expenses from "personal" to "have my business pay for dat".
Personally (regarding boats), I keep business just that......business. Do you also have a single checking account for personal and business?
03-19-2013, 08:18 PM
#22
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If you dont plan to travel much it may be easier for you to register it in a neighboring state and raise fewer DNR eyebrows than a distant state.
Most state registrations have a usage requirement such as "primarily" used in their state. Some base their annual personal property tax on where it is on January 1 or if it is in the state longer than 3 months for instance.
Out of sight, out of mind is best when dealing with taxes sales and PPT. Private storage instead of public, dont leave it on the lift for long periods if you have a slip.
Find some people willing to help you out but down play your actual strategy when Average Joe asks.
Depending on the tax codes of Ohio, there may be multiple options. All depends on how tax savvy you want to become (or pay someone to be).
If you have that Nortech on the way, I would definately do my homework or pay someone. Initial tax savings alone could be huge, not to mention annual PPT.
These tax planning steps are mostly exclusive to those taking the next step of writing down purchase and operating costs.
Most state registrations have a usage requirement such as "primarily" used in their state. Some base their annual personal property tax on where it is on January 1 or if it is in the state longer than 3 months for instance.
Out of sight, out of mind is best when dealing with taxes sales and PPT. Private storage instead of public, dont leave it on the lift for long periods if you have a slip.
Find some people willing to help you out but down play your actual strategy when Average Joe asks.
Depending on the tax codes of Ohio, there may be multiple options. All depends on how tax savvy you want to become (or pay someone to be).
If you have that Nortech on the way, I would definately do my homework or pay someone. Initial tax savings alone could be huge, not to mention annual PPT.
These tax planning steps are mostly exclusive to those taking the next step of writing down purchase and operating costs.
Last edited by ChargeIt; 03-19-2013 at 08:21 PM.
03-19-2013, 08:25 PM
#23
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This is sort of on the same subject.
Does anyone own their boat under an LLC to buffer themselves in the event of an insurance or other type of claim?
Some of my friends who race cars have "Such & Such Racing LLC" own the car to help protect their personal assets in the event of an accident. You can show expenses and income through it as well.
Does anyone own their boat under an LLC to buffer themselves in the event of an insurance or other type of claim?
Some of my friends who race cars have "Such & Such Racing LLC" own the car to help protect their personal assets in the event of an accident. You can show expenses and income through it as well.
03-19-2013, 09:06 PM
#24
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No, separate accounts....otherwise it is not legitimate. Not talking about charter, bare boat commercial. This simply means I INTEND to rent my vessel(s) to third party non beneficiaries.
As far as umbrella, I have encountered instances with osprey and Lloyds where uscg licensing, and inspection were required. If our humble hero is not a uscg captain, he would need to hire a 3rd party liaison (like me) and put that person on the payroll. 1099 or w2 depending on the arrangement made.
As far as umbrella, I have encountered instances with osprey and Lloyds where uscg licensing, and inspection were required. If our humble hero is not a uscg captain, he would need to hire a 3rd party liaison (like me) and put that person on the payroll. 1099 or w2 depending on the arrangement made.
09-02-2014, 09:35 PM
#27
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09-02-2014, 09:53 PM
#28
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