Reply
 
Thread Tools Display Modes
 
Old 07-19-2010, 11:35 AM   #1
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
Declaring your boat as a second home for IRS taxes

I understand that the interest paid on a boat loan can be deducted on one's boat IF, the boat has a sleeping area, galley, toilet/shower AND you stay on it at least 14 days a year.* You can also deduct your reg. fees as well.* I am assuming you could also deduct the county taxes assessed on the boat and moorage as well, is this correct?* Cost of USCG documentation fees as well, I assume.* My question is this, can one deduct what the marina charges per month for your berth?* I'm thinking probably not, but thought I'd ask.

Pattik
__________________
Advertisement

Rocky is offline   Reply With Quote
Old 07-19-2010, 11:48 AM   #2
Scraping Paint
 
City: -
Country: -
Join Date: Oct 2007
Posts: 13,748
RE: Declaring your boat as a second home for IRS taxes

FWIW my wife's first husband was an IRS agent for a long time. She told me that he had told her that two of the main triggers for an IRS audit are claiming a home or part of a home as a work expense, and claiming something like a boat, RV, vacation cabin, etc. as a "second home."
__________________

Marin is offline   Reply With Quote
Old 07-19-2010, 12:25 PM   #3
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
Declaring your boat as a second home for IRS taxes

Check out this article:

http://www.seattlepi.com/local/199197_boatshome11.html

http://madmariner.com/tip/022008

I'll definitely run this by my accountant, but I've heard this from quite a few boatowners as well as yachtbrokers as well.

-- Edited by Rocky on Monday 19th of July 2010 12:34:08 PM

-- Edited by Rocky on Monday 19th of July 2010 12:35:09 PM
Rocky is offline   Reply With Quote
Old 07-19-2010, 01:14 PM   #4
TF Site Team
 
Baker's Avatar
 
City: League City, Tx
Country: Texas
Vessel Model: Carver 356
Join Date: Oct 2007
Posts: 5,630
RE: Declaring your boat as a second home for IRS taxes

It is true....didn't know about the registrations fees and such. I have claimed a boat on my taxes for 15 years now and no sign of an audit....knock on wood.
Baker is offline   Reply With Quote
Old 07-19-2010, 01:21 PM   #5
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
RE: Declaring your boat as a second home for IRS taxes

As long as one stays within the limits of IRS's rules on this, I would think you are fine. I was a real estate agent for 20 years and claimed a small portion of my home as an office and never had an audit either. But, I followed it right down to the letter on what was allowed and it worked fine. Our CHB meets all the criteria, head, aftcabin, galley and toilet and we log in our logbook every time we are there, which I think would be important to substantiate the 14 days per year requirement. I'll still run this by my CPA, but happy to see that others are doing this without consequence. Thanks for you input Baker
Rocky is offline   Reply With Quote
Old 07-19-2010, 01:39 PM   #6
TF Site Team
 
Baker's Avatar
 
City: League City, Tx
Country: Texas
Vessel Model: Carver 356
Join Date: Oct 2007
Posts: 5,630
Declaring your boat as a second home for IRS taxes

No problem. And also note that unless you are going to use your boat as an income generating business, then that 14 day requirement does not apply. I think the author somewhat "glazed over" a portion of the IRS rules and got them confused with something else.

I do know that if you are going to claim your boat as an income generating business(ie deduct expenses) then the MAXIMUM you may use your boat for YOUR pleasure is 14 days in a year. I don't know if she was getting confused and potentially confusing you. But there is no rule stating that you must stay on your boat 14 days a month to write it off as a second home....maybe I missed something....and quite possibly I am confused...

-- Edited by Baker on Monday 19th of July 2010 01:42:08 PM
Baker is offline   Reply With Quote
Old 07-19-2010, 02:10 PM   #7
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
RE: Declaring your boat as a second home for IRS taxes

Baker,

The first link stated:

Living on a boat isn't required, though. All that's needed is a sleeping platform, toilet and cooking facilities, and some indication that the owner stays overnight on the boat at least 14 days a year, according to Internal Revenue Service regulations

The second link somehow combined the renting of your boat with the 14 days per year thing and frankly that was confusing, or confused me.

Maybe I am confused, but I read several articles and my general gest of it was that for the boat to constitute a "second home" one had to spend at least 14 days per YEAR, not month.
I'll still run this by the ol' CPA and make sure, but this actually makes some sense to me. Its not much of a second home if you aren't spending some time there.
Rocky is offline   Reply With Quote
Old 07-19-2010, 02:30 PM   #8
TF Site Team
 
Baker's Avatar
 
City: League City, Tx
Country: Texas
Vessel Model: Carver 356
Join Date: Oct 2007
Posts: 5,630
RE: Declaring your boat as a second home for IRS taxes

Yeppers....the CPA should know! And the article did confuse me a bit.
Baker is offline   Reply With Quote
Old 07-19-2010, 02:46 PM   #9
Guru
 
skipperdude's Avatar
 
City: Whittier AK
Country: USA
Vessel Name: Apache II
Vessel Model: 1974 Donald Jones
Join Date: Oct 2007
Posts: 3,147
RE: Declaring your boat as a second home for IRS taxes

I'm thinking I should be able to deduct something for my little foray into commercial fishing

Perhaps the second home too.

Heck the IRS should owe me money.

SD
skipperdude is offline   Reply With Quote
Old 07-19-2010, 02:56 PM   #10
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
RE: Declaring your boat as a second home for IRS taxes

Okay Baker, just got off the phone with my CPA. She tells me most definitely I can claim the interest on the boat loan and the county property taxes, however, can't claim monthly marina fees...drat it all. State reg/tags are deductible as well and she is researching whether the USCG documentation fees are deductible. As far as the 14 days, you are absolutely correct. If you rent your vessel out, you are required to have stayed on it a min. of 14 days. The 14 days DOES NOT apply if you don't rent the boat out.
Rocky is offline   Reply With Quote
Old 07-19-2010, 03:57 PM   #11
TF Site Team
 
Baker's Avatar
 
City: League City, Tx
Country: Texas
Vessel Model: Carver 356
Join Date: Oct 2007
Posts: 5,630
RE: Declaring your boat as a second home for IRS taxes

Thanks for clearing that up!!!!
Baker is offline   Reply With Quote
Old 07-19-2010, 07:46 PM   #12
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
RE: Declaring your boat as a second home for IRS taxes

Well now we know. I never bothered with this with our old 30' woody, but definitely going to do it on our CHB. Every little bit helps, as they say. Thanks for your input.
Rocky is offline   Reply With Quote
Old 07-19-2010, 07:46 PM   #13
Guru
 
koliver's Avatar
 
City: Saltspring Island
Country: BC, canada
Vessel Name: Retreat
Vessel Model: C&L 44
Join Date: Nov 2007
Posts: 2,165
RE: Declaring your boat as a second home for IRS taxes

FWIW: Here in Canada, we don't get a deduction for our first home, unless we are using it to generate income. Then the portion used for that purpose can be the source of deductions for such things as interest, taxes, heating, etc. The same applies to anything else, such as a second home, boat, etc.
No deducting losses on the boat as income generator against other income, unless the boat income is intended to be your primary source of income.
Still trying to understand the reasoning behind having your home deductible in the first place? Isn't that a major part of what caused the latest credit crunch?
koliver is offline   Reply With Quote
Old 07-19-2010, 09:17 PM   #14
TF Site Team
 
Baker's Avatar
 
City: League City, Tx
Country: Texas
Vessel Model: Carver 356
Join Date: Oct 2007
Posts: 5,630
RE: Declaring your boat as a second home for IRS taxes

Keith, not really. I think the ability to deduct interest on a home in a capitalistic economy encourages people to buy....which boosts the economy. What caused this last crash was a bit more than that!!!!
Baker is offline   Reply With Quote
Old 07-19-2010, 10:06 PM   #15
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
RE: Declaring your boat as a second home for IRS taxes

Baker is right, anymore owning a home and deducting the interest on the mortgage is one of the last real deductions most "average" Americans have, along with the property taxes that go with that mortgage; so it stands to reason its a great incentive for folks to buy homes.
Rocky is offline   Reply With Quote
Old 07-19-2010, 11:00 PM   #16
TF Site Team
 
Baker's Avatar
 
City: League City, Tx
Country: Texas
Vessel Model: Carver 356
Join Date: Oct 2007
Posts: 5,630
Declaring your boat as a second home for IRS taxes

Quote:
Rocky wrote:

Baker is right.....
WOOOOHOOOO!!!!



*






-- Edited by Baker on Monday 19th of July 2010 11:09:50 PM
Baker is offline   Reply With Quote
Old 07-19-2010, 11:01 PM   #17
TF Site Team
 
Baker's Avatar
 
City: League City, Tx
Country: Texas
Vessel Model: Carver 356
Join Date: Oct 2007
Posts: 5,630
RE: Declaring your boat as a second home for IRS taxes

Sorry....just never get to hear those words....
Baker is offline   Reply With Quote
Old 07-20-2010, 10:55 AM   #18
Guru
 
Phil Fill's Avatar
 
City: Everett Wa
Country: US
Vessel Name: Eagle
Vessel Model: Roughwater 58 pilot house
Join Date: Oct 2007
Posts: 2,919
RE: Declaring your boat as a second home for IRS taxes

*
We are sort of back wards we declare our condo as our second place to live!* For the last 13 year been deducting the interest and related tax for both the condo and the boat.* On the tax *form I do not break them out but report one total figure.* With the high interest payments and tax the total of both proable do not equal to many tax payers interest and tax on just their home.**

The IRS puts out a*table/schedule*of ranges based on income for tax deductions.* As long as you*stay in the range your should be OK.* I get the table from the companay CPA each year.*****
Phil Fill is offline   Reply With Quote
Old 07-20-2010, 11:04 AM   #19
FF
Guru
 
FF's Avatar
 
Join Date: Oct 2007
Posts: 16,515
RE: Declaring your boat as a second home for IRS taxes

Without the interest as a tax item there would be NO $100,000 -$2,000,000 motor homes sold.
FF is offline   Reply With Quote
Old 07-20-2010, 07:35 PM   #20
Senior Member
 
Rocky's Avatar
 
Join Date: May 2008
Posts: 171
RE: Declaring your boat as a second home for IRS taxes

Good point FF.

Baker: Give me a break, bet your wife tells you at least once every couple years you are right.....LOL
__________________

Rocky is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Boat Taxes for Non-Residents LadyMJ Financial Matters and Red Tape 22 11-01-2013 05:59 AM




All times are GMT -5. The time now is 12:25 PM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0
Copyright 2006 - 2012