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Boat tax deductions

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Old 02-01-2003, 12:26 PM
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Default Boat tax deductions

Do you know of any ways to deduct more than just the interest on the boat loan?
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Old 02-01-2003, 12:33 PM
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Only if you use it for entertainment or business meetings associated with a business you own. You know , for schmoozing customers
Any other ideas?
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Old 02-01-2003, 12:47 PM
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This is the first tax year for me and the boat. How do I claim the tax credit? Is there a special form to fill out? I have the bank statement that shows how much intrest was paid, but I don't see where to claim the credit.

Thanks for any info anyone may have.
 
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Old 02-01-2003, 12:55 PM
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For everything you ever wanted to know about deducting the interest on your boat as a second home, check out Publication 936 on the IRS site.

The most important clause is this one, straight from 936:
""For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, boat, or similar property that has sleeping, cooking, and toilet facilities.

If you buy a lot and place the manufactured home on it, the interest paid for the lot would be qualifying home mortgage interest, provided that it was secured by the house."


Your lender should mail you form 1099, sometime before January 31 for the prior year that you paid interest. Or at least an interest paid statement. If you don't get this form, you may request it. Your lender may not be aware of the qualifications(believe it or not, some don't).

You must itemize your deductions on your 1040 'Schedule A' in order to take advantage of this clause.

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Old 02-01-2003, 01:01 PM
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Lenders do not have to send you a 1099 on a boat loan because they do not know if it qualifes for deduction.

You need only to document the amount and that it was not reported to you on 1099. Save your records in the event of an audit. Some lenders will send you a 1099 if you request it but it isn't required.
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Old 02-01-2003, 01:06 PM
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Schmoozing deductions fall under the same rules as any other entertainment expenses. You can generally expense fuel, supplies, and cleanup that applies directly to the schmooze voyage. Must document who goes, what client they are affiliated with, basic outline of the voyage, and what business was discussed.
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Old 02-01-2003, 01:58 PM
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I need to qualify, I’m not an account, but some years back I heard you could deduct interest on a boat loan under the guides as a second home, like a motor home, condo etc. I confirmed with my account (who wasn’t sure, but looked it up) and I have deducted interest on any boat loans every since. My understanding (again, not an accountant) if you have a sleeping area (i.e. v-berth), cooking facility (even portable stove) and toilet facility (even a porta-potty) and have a certain number of overnight stays you can deduct the interest as a second home.

Check with an account/tax person, but that’s my understanding.


Powerboatin…………..
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Old 02-01-2003, 03:04 PM
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YOUR ACCOUNTANT WASN'T SURE ???????

Maybe you need a new one.
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Old 02-01-2003, 07:33 PM
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Quote:
Originally posted by Baja Daze
This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, boat, or similar property that has sleeping, cooking, and toilet facilities.


Honey!!! Hold off on sending the taxes in I have to go to the hardware store to buy a sleeping bag, a Bic lighter and a bucket!



PS: I'm not an Accountant but I did stay at a Holiday Inn Express last night.

Last edited by GLH; 02-02-2003 at 03:02 PM.
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Old 02-01-2003, 09:39 PM
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