TexomaPowerboater

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.

TexomaPowerboater

NO

TexomaPowerboater

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.

CAPTAIN CHUCK

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

Michael1

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

CAPTAIN CHUCK

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