Generally 3 years statute

6 years if you've omitted more than 25% income

Unlimited if no return filed or fraud - government has the burden of proof to pove fraud.

NO

Budweiser boat - thats all advertising. And their race boats, which can be considered a business. The mercedez boat is being leased which can be considered a business purpose. It might as well be a billboard business.

I have been trying to find some info on this very subject...
Here is what I want to do....
I am a licensed 500 Ton Master with an Unlimited Master of Towing as well and I already have my own LLC. set up. I was thinking of trying to charter my boat to tourists in my area who would like to ride in a powerboat while here in La.
Now if I do this what would I stand to gain as far as tax write offs are concerned?
I would still use it for my personal leisure but I would actively be trying to make money with it for my company also.......


Chuck

I'm not a CPA, but having done my tax returns for business for years, and here is what I think will happen (check with your tax accountant, of course). You'll have to keep a detailed log of every hour you use the boat for business, and every hour you use it for pleasure. The business use expenses and depreciation will be deductible as a percentage of total hours used, as long as the business makes money within a predetermined period of time (3 years?). I don't know that the IRS will allow a towing service and chartering service to be considered a single business.

Michael

Thanks bro. I will check into it a bit further. My company is actually Professional Marine Pilot Service, Inc. I don't actually do towing of other vessels. I am, however, a tugboat captain as well as a licensed captain of any vessel up to 500 gross tons. In short, I can run any kind of boat as long as it doesn't exceed the aforementioned tonnage. I am thinking since the company was formed for my piloting services it may be possible.


Thanks again.

Chuck

Ok here is my question. If you own your business and put your boat in the business name and put the name on the side or some type of advertisement could you deduct it. Or would it be better to set the boat up under its own business and pay th boat business for advertising. Technically you would be advertising all the time especially if you park it along a major road when not in the water. So business and pleasure should not matter. Maybe it is legal if it is considered fair compensation for advertising. I/E a billboard cost $5000 a month and your boat is a similar size so $4000 seems fair. I would think this would really apply if you went to poker runs around the country more than if you just went out on the same lake every weekend. Give me your opinions please.