Is anyone expensing their boat?
04-09-2008 | 07:54 PM
#32
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From: Cedar Rapids Iowa, LOTO, Cape Coral Fl.
04-09-2008 | 08:46 PM
#33
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From: Here and There
My CPA told me that the only way to expense a boat is to start selling boats and utilize your demos for personal use. Otherwise take the 2nd home interest deduction and call it a day.
Last year I entertained clients a few different weekends @ the lake. I let them stay in my extra condo and took them boating. Even in this instance my CPA said it isn't worth messing with. He also uttered the statement about pigs getting fat and hogs getting slaughtered.
Last year I entertained clients a few different weekends @ the lake. I let them stay in my extra condo and took them boating. Even in this instance my CPA said it isn't worth messing with. He also uttered the statement about pigs getting fat and hogs getting slaughtered.
04-09-2008 | 08:54 PM
#36
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From: Seaford, VA
This is not true. It is perfectly legal to get your road tax reimbursement back in Virginia. I do it every year.
For every gallon of fuel sold in VA, there is a tax of roughly 17.5 cents per gallon, which goes toward improving the roads and associated infrastructure. Since a boat (or lawnmower, backhoe, skidsteer, etc.) is not using this infrastructure, Virginia gives this tax back to you. However, you must have well documented receipts, and you are always up for review when you turn this form in. It has nothing to do with your state or federal income tax. You can turn this form in at anytime. Each individual receipt must be for more than 5 gallons of fuel. This is the same concept as buying diesel fuel that is dyed for farm or off-road use only. Only you get the money (tax) back after the sale, not at initial purchase.
You can read more about it here:
http://www.dmv.state.va.us/webdoc/citizen/fuel_tax.asp
For every gallon of fuel sold in VA, there is a tax of roughly 17.5 cents per gallon, which goes toward improving the roads and associated infrastructure. Since a boat (or lawnmower, backhoe, skidsteer, etc.) is not using this infrastructure, Virginia gives this tax back to you. However, you must have well documented receipts, and you are always up for review when you turn this form in. It has nothing to do with your state or federal income tax. You can turn this form in at anytime. Each individual receipt must be for more than 5 gallons of fuel. This is the same concept as buying diesel fuel that is dyed for farm or off-road use only. Only you get the money (tax) back after the sale, not at initial purchase.
You can read more about it here:
http://www.dmv.state.va.us/webdoc/citizen/fuel_tax.asp
Sidebar - ALL of my receipts from last year got ruined. That sucked.
04-09-2008 | 10:12 PM
#37
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Joined: Oct 2004
Posts: 1,499
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From: Newbury Park, CA
Also when you depreciate and expense listed property or vehicles, you have to put down the percent business use, and it has to be documented. Somehow, I don't think they are going to look at "I was out with my buddies" as legitimate business use.
Also consider this:
"The statute of limitations does not apply in the case of a false tax return or fraudulent tax return filed with the IRS with intent to evade any tax. See section 6501(c)(1) of the Tax Code and section 301.6501(c)-1 of the Tax Regulations."
You could really be setting yourself up for some serious back taxes and penalties. I wouldn't even want to think about it.
Michael
04-09-2008 | 10:17 PM
#38
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From: Bell Canyon, CA
I don't think they are going to look at writing off all your boat expenses as a "mistake".
"The statute of limitations does not apply in the case of a false tax return or fraudulent tax return filed with the IRS with intent to evade any tax. See section 6501(c)(1) of the Tax Code and section 301.6501(c)-1 of the Tax Regulations."
"The statute of limitations does not apply in the case of a false tax return or fraudulent tax return filed with the IRS with intent to evade any tax. See section 6501(c)(1) of the Tax Code and section 301.6501(c)-1 of the Tax Regulations."
They will come after you after you are dead!!!
04-09-2008 | 10:55 PM
#39
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From: St. Louis/ LOTO
Under the current IRC, why is it your opinion that deducting interest on a boat that qualifies as a second residence is a stretch? It is clear that if the boat has a head, a bed, and a galley, it qualifies as a residence per current IRC. I am not sure why that is a stretch. There is a lot of grey areas in tax law, but I think this is fairly clear.
04-09-2008 | 11:04 PM
#40
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From: St. Louis/ LOTO
If you used it as a rental with a rental co you could.Start a rental company and open a bank account.Have people you know rent it from you for what ever you want and have them pay with check and deposit it into your account but not really let them use it.Give them the money back out of a different account.Use the rental account for all your boating costs,repairs,transport,gas etc.Then you could write off all your expenses.One step better is get a captains license and do the same as a charter co.
