In the event that you choose to finance your boat with a 'Coast Guard Mortgage' would this apply to tax like a second mortgage and be able to write off the interest (as long as boat qualifies of course). Info on this topic would be appreciated! Thanks!
-AJ

What is a Coast Guard Mortgage?

Are you referring to having the boat federally (vs. local state) registered/documented with the USCG?

INterest attributable to boat financing is deductible with certain VERY GREY parameters.

If you have a toilet, bed, and sink - I'd deduct.

There are about 2003 threads on this in the bilge. Try a search - I can't remember the IRS code off the top of my head but I think it is like 936 or something.

EDIT: Brian, I believe it is commonly referred to as a Ship's Mortgage. I remember seeing it in my financing paperwork when I first bought the boat, but bottom line - it's a boat loan.

Are you serious??? Time to buy a new boat!

Always check with your accountant before taking tax advice off the internet, but it is generally acceptable to deduct interest on a boat just the same as a second home. I believe you need toilet, shower and cooking facilities.

In California all you need is a sink and toilet (small camping portable is ok) and be able to prove you live aboard for 7 days a year if you are asked to do so by the IRS. This will qualify your boat as a 2nd residence and you can write off all of your boat loan interest each year.

This is good advice. I do taxes for a living.

You can deduct the interest on a standard boat loan if you can eat, sleep and $hit on the boat. It does not have to be a Coast Guard Morgage...I dont even know what the hell that is. That may just be your banks name for the loan.

Once Chels kicks your ass out the boat will be your primary residence anyway! Lmfao!

BTW lets see more pix of your new ride

Shower's have nothing to do with it. Read for yourself.

http://www.irs.gov/pub/irs-pdf/p936.pdf

DIRECT from the IRS - "A home includes a house, condominium,
cooperative, mobile home, house trailer, boat, or similar property that has sleep-ing, cooking, and toilet facilities."