tax write off
01-18-2007, 07:24 PM
#21
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Re: tax write off
[QUOTE=t500hps;1997217]I think the cooking surface has to be something factory installed but check that for yourself. QUOTE]
A boat does not need to have a factory installed cooking surface to be deductible. As mentioned above, all it needs to have is a bed, a head, and a portable propane stove. It is then treated as a second residence in which only mortgage interest is deductible (sales tax if you elect to deduct sales tax instead of state income tax). One thing to mention, only interest paid on up to $1,000,000 of acquistion indebtedness is deductible. So if your mortgage on your main residence is $900,000, then only interest paid on $100,000 of your boat loan is deductible.
A boat does not need to have a factory installed cooking surface to be deductible. As mentioned above, all it needs to have is a bed, a head, and a portable propane stove. It is then treated as a second residence in which only mortgage interest is deductible (sales tax if you elect to deduct sales tax instead of state income tax). One thing to mention, only interest paid on up to $1,000,000 of acquistion indebtedness is deductible. So if your mortgage on your main residence is $900,000, then only interest paid on $100,000 of your boat loan is deductible.
01-18-2007, 07:27 PM
#22
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Re: tax write off
Wrote off my 26 Scarab the three years I owned it with no problems. Like mpally said, it doesn't have to have a factory installed cooking surface. I had a V-Berth and a porta potti. I was covered.
Buck
01-19-2007, 07:46 AM
#23
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Re: tax write off
Bern, your CPA needs to get out more.....
I'd find a new one, what other well known opportunities is he missing- we're just a bunch of fun loving boaters- it's his JOB to know this and make you aware of it. There are peeps who can help and peeps who fill out forms based on what you tell them
I'd find a new one, what other well known opportunities is he missing- we're just a bunch of fun loving boaters- it's his JOB to know this and make you aware of it. There are peeps who can help and peeps who fill out forms based on what you tell them
01-19-2007, 10:27 AM
#24
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Re: tax write off
On another boat forum a CPA basically said that as long as the boat is fairly large, over 20 foot or so and has some type of cover, cabin, etc. then you would be fine. He also said that if you were asked during an audit you would say that it has eating, sleeping, and cooking facilities and that he has never heard of an auditor leaving the office to look at a boat .
.
01-21-2007, 01:46 PM
#25
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01-21-2007, 09:45 PM
#26
Charter Member # 55
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Re: tax write off
Mr auditior, "My boat has sleeping, cooking and bathroom facilities"
If they wanna see it, "its at the lake in storage about 350 miles away"
If they wanna see it, "its at the lake in storage about 350 miles away"
01-21-2007, 10:16 PM
#27
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01-22-2007, 08:59 AM
#28
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Re: tax write off
On another boat forum a CPA basically said that as long as the boat is fairly large, over 20 foot or so and has some type of cover, cabin, etc. then you would be fine. He also said that if you were asked during an audit you would say that it has eating, sleeping, and cooking facilities and that he has never heard of an auditor leaving the office to look at a boat .
.That way if they want to get nasty, you do not have to worry.
01-22-2007, 09:23 AM
#29
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Re: tax write off
I stand by my previous post,all the other posts are meaningless as I know FRED (Bernie's boss) for a long time and based on past performance from FRED I would guess BERNIE should check on food stamps instead of writeoffs.
