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Is anyone expensing their boat?

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Old 04-10-2008, 01:08 PM
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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.
Understandably I didn have time to address every issue brought up on this thread, but I will be happy to after 4/15. "Its a stretch" meaning not all boats may not qualify. Not everybody has a go-fast with a sink, bed, and toilet. I don't have any problem with deducting the interest on a 30ft+ boat with sink and toilet. Its the smaller ones I was referring to being a stretch. Sorry for the confusion.

I expected to get blasted after my post and I appreciate the other members backing me up. There are legitimate reasons to write off a boat via an actual business being ran with a boat (charter, OSO - lucky bastard, tow boat, etc)
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Old 04-10-2008, 04:02 PM
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I've just finished reading this thread and agree with alot of the comments that people have said that go along the lines of "Are you fuking kidding me?"

As a CPA myself, I only have the balls to deduct the interest I pay as my vacation home.

For the average Joe, I wouldnt dream of trying to deduct any more.

For the not so average Joe's where the boat has a bona fide business purpose...thats another story all together.

Last edited by FormulaOne; 04-10-2008 at 04:05 PM.
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Old 04-10-2008, 08:37 PM
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Could you deduct the interest of the loan as a 2nd home if you have a 32ft center console with no cuddy but a head, and sink in the console? Would the IRS believe you just throw out a sleeping bag under the stars on the bow?
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Old 04-10-2008, 08:47 PM
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Unphuckinbelievable what I'm reading. My family has been in the tax business for 30+years. We have never once written off a boat.............maybe the interest expense and thats a stretch.

Gas/repairs for poker runs as charity is retarded. What benefit does a charitable organization receive by you filling up your tank with gas? Wake up people.
I didn't mean to piss you off. I asked the original question to get opinions and experiences. My gas is expensed because I own two business that both have a huge fuel bill and to fill my boat is just a small drop in a bucket. Are you telling me that the entrace fee to a poker run for charity isn't a charitable contribution? I am very interested in hearing your professional opinion, however there are a lot of other intelligent opinions here and I'm sure that none of us want to be called retarded. You have a valuable professional opinion that should be heard, however choose your words carefully. They can sink ships, and also damage respect as a professional. Thanks for your input.
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Old 04-10-2008, 09:03 PM
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Could you deduct the interest of the loan as a 2nd home if you have a 32ft center console with no cuddy but a head, and sink in the console? Would the IRS believe you just throw out a sleeping bag under the stars on the bow?
I am a CPA but by no means a tax guro. This whole area is really grey in my opinion. I dont think there is an exact yes or no. Like I said, I deduct the interest on my boat as a vacation home. I have a bed, head, and a Galley.

My head is pump out. If it wasnt it would basically be a bucket in a hole in the floor. Would that still make it a head?

My galley is a sink with pressure water and a microwave. Does that count?

My point is that the rules state (in about as much detail) a vacation home qualifies if it has a bed, head, and galley for cooking.

If you get audited, I would guess it is up to the auditor to make a judgement on if they qualify or not. If you do not have a fixed bed, it may be a bit more difficult to plead your case...Likewise if the galley consists of only a sink.
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Old 04-10-2008, 09:13 PM
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Are you telling me that the entrace fee to a poker run for charity isn't a charitable contribution? I am very interested in hearing your professional opinion, however there are a lot of other intelligent opinions here and I'm sure that none of us want to be called retarded. You have a valuable professional opinion that should be heard, however choose your words carefully. They can sink ships, and also damage respect as a professional. Thanks for your input.
Agreed. Our profession has been tainted enough by Enrons, A&A's and the like. We used to be a self regulated industry but a few bad azzholes (sorry I meant apples) spoiled the bunch.

Please recognize that while most firms that prep taxes are CPA firms, it is not a requirement. Any Joe can go open up a 1040 shop and prep tax returns all day.
My point..There is a HUGE difference between an accountant/CPA and a tax preparer.


If a client asked me that question I would likely say that yes the entrance fee can be a charatible cont. if it is for a qualified organization and you are given receipt of such. But NOTHING else.

Similiar if you bought a ticket to go to a Red Cross Benefit dinner. The ticket would be a contribution but not your gas to get there, the tux, (a hooker if you couldnt find a date), etc, etc.

There are other limits, rules, and "If then's" but I hope you get my jist. And again, this is not meant to be tax advice....Only my opinion to a hypothetical situation.

Last edited by FormulaOne; 04-10-2008 at 09:21 PM.
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Old 04-10-2008, 09:13 PM
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I didn't reem you out. I stated that when I visited my accountant he looked over the form and said you can not write off fuel expense or the tax on the fuel unless you make money with your boat and to do that you have to have a captians license. That is the legal way to do it. You can fudge it all up but it is not worth the chance.

Here is the thread:
http://www.offshoreonly.com/forums/s...t=gas+tax+form

I can write off the boat interest as a 2nd home because it qualify's and all my boats have since 1997 . I can not write off the sales tax from the fuel I put in my boat because I am not a licensed captain using my boat for business. Taking a customer for a boat ride does not count either.
It's funny how in your very opinionated thread you gave the obvious perception you and your family were in the tax business. Now in this post you got an opinion from "your accountant". Y know something? My dad was in the freight business for over 50 years. That doesn't make me an expert. Next time I would love to hear your personal opinion, please don't try to give the perception it's a professional opinion. I am not trying to find a way to sneak around the rules, I want to know "what the rules are" I want to thank everyone for their input.
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Old 04-10-2008, 09:25 PM
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It's funny how in your very opinionated thread you gave the obvious perception you and your family were in the tax business. Now in this post you got an opinion from "your accountant". Y know something? My dad was in the freight business for over 50 years. That doesn't make me an expert. Next time I would love to hear your personal opinion, please don't try to give the perception it's a professional opinion. I am not trying to find a way to sneak around the rules, I want to know "what the rules are" I want to thank everyone for their input.
Fever Mike. I am sorry. My bad. I got so excited about the guy who called us retards that screwed up and wrongly replied to your post. I am so sorry.
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Old 04-10-2008, 09:44 PM
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Wiggler???
BuddyOO????

Just curious
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Old 04-10-2008, 11:02 PM
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My gas is expensed because I own two business that both have a huge fuel bill and to fill my boat is just a small drop in a bucket.
So just because the amount of your boat fuel is relatively small compared to your company's fuel expense means it's legal to deduct your personal expenses? So I guess if someone owns a company that has $500 million in revenue, the owner can write-off all his personal expenses because they're immaterial compared to the company expenses? I would like to see the IRS agents reaction to that statement.
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