formula31

I dont think the loan has to be secured by the boat. None of mine ever were. I went through this with the IRS and they told me, sink with running water, stove and/or microwave, potty (fixed or not) and your in. Although, the IRS advice is frequently wrong.

Advantage_Rob

oops, my lender doesnt give a form 1098, and I just added my house and boat together last year. Thanks for the info, I'll do it right this year I guess.

jr

advantage_rob, all I had to do is call my lender and asked them to send me a statement of paid interest each year. They have no problem with that. It just doesn't come on a 1099. This way I have a piece of paper just in case.

Advantage_Rob

I did get that, and I kept it so I dont feel too worried about it. I write off house, boat, and I still pay them. I'm one of those people that maxes my deductions so I get bigger checks, and I still hate when I owe them come april, but god bless america anyway!!

formula31

Good Credit, didnt need to secure them, Just my signature, boy are they stupid huh. Geez, I bought one boat with credit cards. They were giving these zero percent rates for life, so I maxed them, tore up the cards, and you get to use their money for nothing, for life. Isnt America great? I wonder if that secured part is something new. I dont have to worry about it now, thank god.

Advantage_Rob

I have copies of the irs web page printout I made last year, and it says: "If the loan is secured by the boat you can claim intrest on this loan only if the boat meets the requrements of a qualified home and is considered your second home. A qualified home includes a house, condominium, co-operative, mobile home, boat, or similar property that has sleeping, cooking, and toilet facilities. You canonly have one principal residence and only onequalified second home. The intrest is deducted on form 1040, schedule A, Itemized Deductions, as mortgage intrest on line 10 or 11." It has a reference of "Publication 936", home mortgage intrest deduction, and another of "Tax topic 505" intrest expences. All of this is directly from the irs web page and the only thing I edited was I referenced boat where they used fifth wheel as thier example, but they do reference boat just before they say, "or similar property". This is on the web at www.irs.ustreas.gov and is under the faq's I cant find the exact page anymore, but I can fax you a copy if you want.

CigDaze

This is the publication which defines the requirements both in terms of qualifications of the home and the type of loan.
http://www.irs.gov/formspubs/display...D12831,00.html

CigDaze

Is there an echo in here...

Advantage_Rob

hello..... hello....hello...

formula31

After reading that, I now have a headache. I wonder if the asperin I need now is deductable as a tax preparation expense. I am now glad my boat is my primary residence.