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Boat tax deductions

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Old 02-03-2003, 09:07 PM
  #21
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Dj,

I have claimed without a 1098. All the bank would give me was a spreadsheet with the calculations.

Just keep a copy.
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Old 02-03-2003, 09:45 PM
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Dave M I would never take out an equity loan on my house to buy a boat. I am just too conservative for that. The boat can stand on it's own or I wouldn't buy it.

You need no documentation to take the deduction. You simply need the amount of interest paid in 2002 and to whom it was paid. This goes on form A under additional interst paid. It is really no big deal.

But......definitly get the paperwork from the bank. Whether it is a 1098 or a statement or a letter, and put it in your files. I would also be prepared to justify the deduction with a description of the boat and the amenities. I did get audited once and these things came in very handy and I had no problems.

Taking any other deductions like customer trips etc. can be a little tricky depending on who owns the boat (company or personal) and how the company is set up (LLC, Sub S, C Corp, etc), It can also affect how the interest deduction is taken.

Talk to a knowledgeable accountant so you do not get into trouble.
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Old 02-03-2003, 10:39 PM
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I save gas receipts. My accountant gets me a credit on fuel due to the road tax on gasoline and the boat is used on the water. I believe it is somewhere near 0.36/gal. here in NE.
 
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Old 02-03-2003, 11:33 PM
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You can also try this if you are incorporated. Have the Co. purchase the boat and you can take the 24K annual equipment deduction. Also can write off operating costs. Not sure of the exact procedure but get yourself a stud accountant and he/she will take care of it for you. Mine has been writing my boats off one way or another for the last 10 years without a problem.
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Old 02-04-2003, 12:31 AM
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Talking Re: Boat tax deductions

Quote:
Originally posted by familyman
Do you know of any ways to deduct more than just the interest on the boat loan?
IF YOU OWN OR PART OF A PROPELLER REPAIR SHOP IT CAN BE DEDUCTED AS PROPTESTING EQUIPMENT/CALL ME IF YOU REALLY WANT TO SAVE ALOT OF MONEY/
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Old 02-04-2003, 12:48 AM
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see post above
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Old 02-04-2003, 01:23 AM
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koko -

you got some big nads.
That's a rough one to sell to the auditor.

Under "expert" advisement, I've never had the company purchase any of my cars, boats, or bikes. Too dang hard to sell it. There's people in jail for similar...

Now, I do let the company pay for any of my actual expenses incurred in any vehicle, company-owned, or otherwise, that stem from even a remotely connected business outing. Got full documentation to back it up, too.

I've dang sure seen a lot of boats with DELAWARE stencilied across their transoms (a boat registered in DE does not have to pay sales tax if owned by a corporation, or something along those lines)...
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Old 02-04-2003, 08:27 AM
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Sorry Fella's!
The damn 9 and 8 are too close! my bad.

First instincts are usually the right one...

Anyway, my bank works the same as most. I don't get a 1098 automatically by mail unless I ask for one. But you don't need it. They'll give you the interest paid over the phone.
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Old 02-04-2003, 08:46 AM
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-Yahh, Yahh, I got ten square feet in the garage maybe it's time for GL's Prop & Used Tire Shop, Inc.... Yahh, Yahhh testing props Yahh, write off gas, insurance ,depriciation, interest, beer.. Yahh Put the wife and kid on the payroll Yahh. Furlogh them after twenty weeks so they get on unempoyment for six months, Yahh.....Yahhh, Yahh that's the ticket Yahh!!
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Old 02-04-2003, 09:50 AM
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Quote:
Originally posted by mcollinstn
koko -

you got some big nads.
That's a rough one to sell to the auditor.

I don't think it's that big a stretch. I'm sure people that own businesses do it all the time. Look at the Daytona Harley Davidson Donzi from the APBA races this year... He used it to promote his business by slapping the dealer name on the side. I bet that's a 100% deductible marketing expense. It's a travelling billboard.
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