Tax question?????
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I am pretty sure that part does not matter.
Remember, you can only deduct the costs from any profit you make from the boat business. That is why I don't do more "business" deductions...I don't want to invite audit that will cost more than my tax "benefits".
For example, I wanted to deduct pool maintenance by having an occasional class (Alex) but unless I can show that I am offsetting it against profit, then I cannot take it...against real estate, investment, other "income".
Sure..you can show a loss for a few years...but then they come a knockin'.
some people opt to play it grey and then change businesses.....commonly done, not worth the headache unless you are talking big bucks.
I considered paying the higher rate of taxes into a fund (savings/ contigency tax fund) in case I got hit with a "no" from uncle sam....I figured as long as I had the money to pay up..and it was earning income somewhere, then what did I have to lose? ...some penalty offset by the profit earnings. Ultimately when I ran the numbers, I decided against it. Tied me into too many other people and paper trails....never good in the scuba industry.
There are some better shelters out there, effort-wise, like fully funding Roths, Educational funds, and my new one.. HSA.
Also..home equity money can be used on things like boat purchases and that way it is deductable, one reason why players sometimes don't want their house paid off.
Navy Fed has amazingly low rates for boats...some of the best boat financing around. I think we got under 5 percent...would make no sense, for example to pay cash if that money is earning more somewhere. 10% (stock market) -5%= still coming out ahead by financing it. I was asking how they could offer those rates on an UNSECURED loan for a boat...the answer (I think) is that they have a special relationship with the military...the payment isn't paid and they have a straight b-line into Kathy's check. No costs involved in re-couping the money.
Some Marine doesn't make his car payment...they call his officer and then it is arranged for it to come straight out of the paycheck..to Navy Fed. I am new at this..I could be wrong, but that is what I came up with. They have an inside access to the funds, basicaly.
So..even if you have the cash, you might be better off having wifey finance it through Navy Fed....just using that as a hypothetical, of course.
Not to be in yo bidness, or anyting.
Make sure you get a no pre-payment penalty. You may decide to accelerate the pay-off.
Remember, you can only deduct the costs from any profit you make from the boat business. That is why I don't do more "business" deductions...I don't want to invite audit that will cost more than my tax "benefits".
For example, I wanted to deduct pool maintenance by having an occasional class (Alex) but unless I can show that I am offsetting it against profit, then I cannot take it...against real estate, investment, other "income".
Sure..you can show a loss for a few years...but then they come a knockin'.
some people opt to play it grey and then change businesses.....commonly done, not worth the headache unless you are talking big bucks.
I considered paying the higher rate of taxes into a fund (savings/ contigency tax fund) in case I got hit with a "no" from uncle sam....I figured as long as I had the money to pay up..and it was earning income somewhere, then what did I have to lose? ...some penalty offset by the profit earnings. Ultimately when I ran the numbers, I decided against it. Tied me into too many other people and paper trails....never good in the scuba industry.
There are some better shelters out there, effort-wise, like fully funding Roths, Educational funds, and my new one.. HSA.
Also..home equity money can be used on things like boat purchases and that way it is deductable, one reason why players sometimes don't want their house paid off.
Navy Fed has amazingly low rates for boats...some of the best boat financing around. I think we got under 5 percent...would make no sense, for example to pay cash if that money is earning more somewhere. 10% (stock market) -5%= still coming out ahead by financing it. I was asking how they could offer those rates on an UNSECURED loan for a boat...the answer (I think) is that they have a special relationship with the military...the payment isn't paid and they have a straight b-line into Kathy's check. No costs involved in re-couping the money.
Some Marine doesn't make his car payment...they call his officer and then it is arranged for it to come straight out of the paycheck..to Navy Fed. I am new at this..I could be wrong, but that is what I came up with. They have an inside access to the funds, basicaly.
So..even if you have the cash, you might be better off having wifey finance it through Navy Fed....just using that as a hypothetical, of course.
Not to be in yo bidness, or anyting.
Make sure you get a no pre-payment penalty. You may decide to accelerate the pay-off.
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nope..only one. (second home..two total, primary...secondary)
I did all that with my Catalina place...unless it has changed. You might look at filing seperately or undoing your vows.
Then maybe you could each be allowed one?
Accountants are good things....just pay hourly though.
I did all that with my Catalina place...unless it has changed. You might look at filing seperately or undoing your vows.
Then maybe you could each be allowed one?
Accountants are good things....just pay hourly though.
I can't talk to mine untill monday. One issue with teh Fed credit union is the age of the vessel. It does not show up in the "blue book" so they wont do it, the other is it's in Hawaii so many others wont touch it. We are trying to figure out teh best way to do this.
CAPT HOOK
Contributor
Check with BoatUS - they seem to have financing and insurance where others don't.
ArcticDiver
Contributor
This is the kind of information you can easily get from the IRS Publication. Taxes are only part of the picture. Also, a tax deduction doesn't do you any good until your business is generating enough income to be profitable on a cash flow basis. In other words, tax deductions don't generate the cash you need to run the business and get a return on your investment; they reduce the amount of money you have to send to Uncle.
Even then deductions only help to the extent of your tax bracket. That is important since even if you set up as a Sub S the results of your business flow through to your personal return.
Perhaps it is time for you to write up a complete business plan that encompasses marketing, operations, finance, etc. Not only will that make you be organized; it will impress folks who you are trying to get money from.
Even then deductions only help to the extent of your tax bracket. That is important since even if you set up as a Sub S the results of your business flow through to your personal return.
Perhaps it is time for you to write up a complete business plan that encompasses marketing, operations, finance, etc. Not only will that make you be organized; it will impress folks who you are trying to get money from.
mike_s
Contributor
I thought if a boat or camper (or other shack) had a sink in it that you could count it off as a 2nd home? (on your taxes. I think you can cound off interest, taxes, and maybe some other stuff).
that right?
that right?
cobaltblue
Contributor
To use a boat as a write off, it has to have sleeping quarters, cooking ability, pressure water, and at least a porta potti.
As for business, that's been covered above. One of the biggest advantages we have in Michigan by using the boat for business is we can recoup some of the road tax that is paid on the fuel for the boat. In 2006, it's 19.6 cents per gallon.
As for business, that's been covered above. One of the biggest advantages we have in Michigan by using the boat for business is we can recoup some of the road tax that is paid on the fuel for the boat. In 2006, it's 19.6 cents per gallon.
mrjimboalaska
Contributor
WC,
You are only allowed one 2nd home write-off (interest/taxes paid).
The Sailboat have a recent survey? the CU should accept that, I got my loan
from USAA for 5.5 at the time(You can make more than that thru investing, so
why not borrow the $$$)
You are only allowed one 2nd home write-off (interest/taxes paid).
The Sailboat have a recent survey? the CU should accept that, I got my loan
from USAA for 5.5 at the time(You can make more than that thru investing, so
why not borrow the $$$)
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