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Taxes and Boat Question

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Old 04-11-2003, 10:50 AM
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Default Taxes and Boat Question

I know all about writing the boat of as a second home.

My question is "When you sell it can you write off the loss???"
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Old 04-11-2003, 11:15 AM
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sure,

if you sell it for less then you have already depreciated it. i am sure your cpa will tell you.

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Old 04-11-2003, 11:54 AM
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I didn't take deprieciation on it, just the interest???
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Old 04-11-2003, 11:59 AM
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Tell us more about depreciating a boat and writing off the interest on a boat???
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Old 04-11-2003, 12:42 PM
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East Coast B,
The issue of interest on a boat has been discussed many times. You should be able to find it doing a search.

I am simply trying to determine how to write off the loss of my second home (in this case a boat).
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Old 04-11-2003, 12:45 PM
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Straight from my tax people about depreciating my boat:

Only if it is used to generate income, like rental income, racing winnings, drug trafficking etc.
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Old 04-11-2003, 12:52 PM
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in my case because i race every year i get to depreciate the boat untill eventually it cost me nothing. that's why you see a lot of rich people give away there boats to charity's and what not. if i were to sell the boat then i would have to pay taxes on it. that's why you see a lot of old race boats in people back yards.

if you work it as a second home then only the intrst is a write off. the only loss you could incurr is if let say it is valued at 100,000.00 then you sell it for 80,000.00 then you could write off the 20,000.00

also you you come up with the bright idea of taking your bussiness and putting it on the side of the boat that will not work unless you bussiness is directly marine related.

what you can do is buy the boat in the bussiness name and write it off as an expense. such as taking out clients. but you have to have the write bussiness to do it.

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Old 04-11-2003, 01:10 PM
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I just asked a CPA, He laughed
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Old 04-11-2003, 01:19 PM
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On the other hand, if your company pays sponsorship money to run your boat in a pokerrun as a means of advertising it does'nt matter what your business is. Its the same as sponsoring your own race car.
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Old 04-11-2003, 01:23 PM
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Quote:
Originally posted by Treadwellmotorsports
the only loss you could incurr is if let say it is valued at 100,000.00 then you sell it for 80,000.00 then you could write off the 20,000.00


Treadewll
Still some confusion here, some yes and some no. Although the no's are coming indirectly from TAX people.

I'll assume no for now.
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