TexasVines

what about setting up a boat rental business and then you "rent" the boat out 5-6 times a year to friends for $50/$100 a day

I suppose that would only work for 3 years seeing as how that would make no profit.....but by then you have a severely depreciated "asset" to sell from your rental business to "whoever" (being you)

Catastrophe

Forget tax savings for a minute.

By having your boat in your company's name you risk the possibility of lawsuits affecting your revenue stream if there is an accident.

Been there.

THRILLSEEKER

If you want to write off anything other than the occasional fuel or maintenance bill for "client entertainment" then you have to be able to convince the IRS that you need that boat to conduct your type of business.

I have friends who have setup an LLC and obtained distributor accounts for marine parts, then sell parts to all their boating friends at little or no markup. Personally, I would'nt want to be the guy who has to explain to the auditor why you're writing off 20k or more worth of depreciation and interest per year on an LLC thats grossing 10k or less.

NORTECH-ANGLER

Looking at all of these responses. There seems to be no slam dunk! Life is still too good to go to jail. Not looking to be illegal but maybe push the envolope a little. I do write off some gas and do a little entertaining for that matter that is business related but can't see writing off a boat of 300k. Just wished there was a little light I could see at the end of the tunnel for small business owners. It seems every day I am challenged with growth, health care, additional taxes that limits me from growing. Doesn't make since to growing and add on any longer when you will in turn give most or all back!

Try to figure a way to be more creative with what i have verses working hard and longer for less.

This guy is going to cripple all of us in the next 3 years!

Tom A.

This is sort of on the same subject.

Does anyone own their boat under an LLC to buffer themselves in the event of an insurance or other type of claim?
Some of my friends who race cars have "Such & Such Racing LLC" own the car to help protect their personal assets in the event of an accident. You can show expenses and income through it as well.

redsled33

I don't know much about it but i have heard you can set up an LLC in Montana. I have a friend who has his Fountain Motor coach and a couple of high dollar cars in a Montana LLC. I believe it was to avoid paying taxes. From Waht i understand you have a Montana Attorney do the paper work and have a P.O. Box in Montana.

Canamman

Keeping the boat in your name is the best way to keep the IRS from asking questions. In addition to writing off the occasional fuel bill and food/drink tabs, you can also rent the boat to your business for those "client" outings. Who is to say what your rental fee is? How many "client" outings did you have during the course of the boating season? Everything is a gray area as long as it isn't every day or excessive.

seafordguy

Most of the stuff above is going to fall WAY below the IRS radar unless they are digging around in your life for other more unscrupulous issues.

I will explore putting my next boat in an LLC for protection.

For the TAX piece - I just put it on an equity line so I can at least write off the interest. VERY safe.

Interceptor

I'd be more worried about the liability issues than tax issues.

commandersander

iTrader: (8)

In fl, commercial registration costs the same as personal. However, insurance becomes a new game....as in cost goes up.

I have several....and do rent them. However, I boat for free. Test and tune, repair test, rent prep. They all cut into the bottom line, but ultimately...it is a win win. At the end, you net less on your Corp filing but continue to reap the rewards of income from the llc as well lower tax on the Corp. Yes, you then pay on income from the llc, but consider it found money...

Oh....and it's legal.