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Is anyone expensing their boat?

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Old 04-10-2008, 11:05 PM
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Gramps??
Super-Cat Cove??
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Old 04-10-2008, 11:17 PM
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Originally Posted by FeverMike View Post
Yep 100% true!

Also there was a form on a past thread about being able to write off your gas tax...well I printed this form and took it to my accountant for my business and found out the only way to write off gas and other expenses is for the boat to make money and you have a captain license. He also said this would for sure through a red flag and get you in trouble.
Mike, I would get a second opinion on this. If it's a rebate for the highway fuel tax, then you have the right to be refunded. One of the taxes on gas goes to fund highway maintenance and infrastructure. Since the gas is used in a boat and, therefore, not on a road, you should be reimbursed for that tax. This rebate has nothing to do with the IRS and would come from your state's DOR. Also, this rebate is not taxable income either. We have client that operates an airline that receives the same refund reported on the same form to the tune of several million dollars. They have been audited and the IRS had no issue with this. However, since the company had included the fuel tax in its fuel expense, this refund was properly classified as taxable income.
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Old 04-11-2008, 10:39 PM
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It kinda makes me sick to read some of these comments. So many comments are one person telling another how stupid, retarded, or dumb they are. Aren't we all on the same side to help our brothers with good advice? Give advice how to keep your brother out of trouble. Give advice how to do something correctly. Please don't tell everyone how much smarter you are. Some comments sound like they are coming from young high school kids trying to mark their territory and prove how much smarter they are then the kid with glasses and braces sitting next to them.
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Old 04-12-2008, 12:25 AM
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It kinda makes me sick to read some of these comments. So many comments are one person telling another how stupid, retarded, or dumb they are. Aren't we all on the same side to help our brothers with good advice? Give advice how to keep your brother out of trouble. Give advice how to do something correctly. Please don't tell everyone how much smarter you are. Some comments sound like they are coming from young high school kids trying to mark their territory and prove how much smarter they are then the kid with glasses and braces sitting next to them.
If this is directed at me, then you are taking my comments the wrong way. I never said you were stupid, retarded, or anything of the like. Some of the comments in this thread are shocking. Some guys are trying to rationalize illegal acts. I can't believe a CPA would sign some of these returns knowing this activity is included in the tax return. Obviously, under certian circumstances, boating related expenses are deductible, but most of the time they are not. Take the information in this thread and decide for yourself. This thread isn't going to do chit for you if you're sitting accross a desk from an IRS agent explaining items deducted on your tax returns.
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Old 04-12-2008, 01:18 PM
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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.
Entrance fee - COULD BE DEDUCTIBLE. I'm not saying it is or isn't. Every poker run is different. Some of the ones I've gone on had free meals and also had a pretty good payout. For the entry fee to be deductible you need to of not received any goods or services and I would not deduct any without a charitable receipt. The problem is that you end up with say 100 guys donating $100 fee. The sponsors deduct the cost of the event, meals, and a payout at the end and the charity goes away with say 1/3 of the entry fees. That 1/3 is the deductible amount.

The professionalism comment - we do things a little different down here in Fort Worth. If you were my client and I found out what you were doing I would have been a lot more "unprofessional" about it.

The other CPA made a comment on tax preparers not having to be CPA's which is true, but thats not how we do business. I've got a Masters in Taxation and a lot of our business comes from other CPA's that don't understand the grey areas.
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Old 04-12-2008, 01:28 PM
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Entrance fee - COULD BE DEDUCTIBLE. I'm not saying it is or isn't. Every poker run is different. Some of the ones I've gone on had free meals and also had a pretty good payout. For the entry fee to be deductible you need to of not received any goods or services and I would not deduct any without a charitable receipt. The problem is that you end up with say 100 guys donating $100 fee. The sponsors deduct the cost of the event, meals, and a payout at the end and the charity goes away with say 1/3 of the entry fees. That 1/3 is the deductible amount.

The professionalism comment - we do things a little different down here in Fort Worth. If you were my client and I found out what you were doing I would have been a lot more "unprofessional" about it.

The other CPA made a comment on tax preparers not having to be CPA's which is true, but thats not how we do business. I've got a Masters in Taxation and a lot of our business comes from other CPA's that don't understand the grey areas.
Anybody that is going to be grasping for that small of a dollar should find another sport. Maybe Badminton.
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Old 04-12-2008, 01:37 PM
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Originally Posted by Ona-Mission View Post
If I had a car and took it to the track every weekend to compete I could expense that. I:
Actually that would be more of a hobby. You can have expenses up the the amount of income. This is a really grey area. To write the whole car off - courts would look to whether or not your running things in a businesse like manner............which is also a grey area too complex for this forum.

It does bring up another point. If you win a poker run you can deduct gas, repairs, travel, entry fees, and depreciation on the boat. BUT only to the extent of income (i.e. no losses) to offset the winnings.
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Old 04-12-2008, 01:38 PM
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Originally Posted by beertruck View Post
biggest problem with expensing vehicles (boat, cars) is that if you expense it completely, then sell the vehicle, you have to recapture the sale as income. The tax man will get you in the end, expensing only delays the tax occurance.
Good info.

It will be ordinary income (not capital gain)
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Old 04-12-2008, 01:43 PM
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Originally Posted by kenvik01 View Post
I expense mine as a 2nd home. As long as you have a sink, potty, place to sleep, and means to cook,, you can wright it off. I also (at the advice of my accountant) write off my vehicle mileage to PR, as most (that I attend) are for charity.
I hope you mean you expens the interest.

Mileage - I think thats very aggresive. You are allowed to deduct mileage for volunteering at charitable events. Meaning if you go and volunteer at a shelter then you can deduct the mileage. If your doing a poker run where a qualified organization is putting unfortunate kids on board like SOTW, then it would be OK as long as your chartering the kids.
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Old 04-12-2008, 01:47 PM
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Originally Posted by JJONES View Post
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.
Thats fraud
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