Tax question?????

[Black Dog]

The interest paid on a boat loan can be deducted if the boat is bigger the 28' and has a galley and head. The boat has to clamed as a second residence.

No other costs can be deducted, unless you charter the boat out which is a whole different subject.

Use a Marine finace company to find a bank loan if you don't want to use a home equity loan.
Trident Funding in MD and Essex Credit in CT and MA

 

[ArcticDiver]

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.

Depends on what the purpose is. If for business then only need the items necessary for the business. If as a home then you must meet the tax code requirements for use as a home.

If for a business: This is one of those subjects where everyone is an "expert" even if only in their own minds. Thanks to a Congress that has written a complicated Tax Code this is one of the areas for which a person is well advised to buy some professional advice.

If for a second home: The Publication spells it out pretty clearly.

 

[shakeybrainsurgeon]

We need a flat tax or a sales tax... in my experience, questions like this have no completely right answer, even if you ask the IRS twice, you might get two different answers

 

[ArcticDiver]

We need a flat tax or a sales tax... in my experience, questions like this have no completely right answer, even if you ask the IRS twice, you might get two different answers

Until I analyzed the effects of a flat tax I used to think it was a good idea. But had to change my mind when I discovered that our Nation's tax laws are designed as much to implement social policy as they are to generate income to the government.

In fact, a good argument can be made that our Federal Tax Code is more about social policy than it is about generating income for the Federal Government. Thus, if we went to a flat tax all that social engineering would be cast aside.

But; this kind of discussion, even though interesting from an academic perspective isn't really very fruitful. There are just too many different groups that would be severely hurt if a flat tax were implemented. These range from homeowners who would no longer be able to deduct their mortgage interest; to the construction industry that builds the homes; to municipalities that could no longer sell tax exempt bonds; to the investors who buy the bonds; etc. etc.

This says nothing about the effect of removing the current progressive income tax. Once everyone paid the same tax rate much of the tax burden carried by the higher income brackets would be shifted to the lower brackets.

So, it is hard to see where there would be enough votes to do anything substantial in this area.

 

[Wildcard]

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 $$$)

Yes we did but it's an older yacht and not shown on the blue book. It was survyed in July at well more than our offer.
I know the ins and outs of boats as a business, did it for five years. I appriciate all the help but please read what I posted first. ( not intended for you JIm) This is a plesure only boat. Im trying NOT to have a boat business again....Need to talk to my accouantant on monday. I wonder if we file seperate if we each can claim a second home? Cripes, no wonder I have no money, too many houses and boats I don't use.

 

[Wildcard]

Until I analyzed the effects of a flat tax I used to think it was a good idea. But had to change my mind when I discovered that our Nation's tax laws are designed as much to implement social policy as they are to generate income to the government.

In fact, a good argument can be made that our Federal Tax Code is more about social policy than it is about generating income for the Federal Government. Thus, if we went to a flat tax all that social engineering would be cast aside.

But; this kind of discussion, even though interesting from an academic perspective isn't really very fruitful. There are just too many different groups that would be severely hurt if a flat tax were implemented. These range from homeowners who would no longer be able to deduct their mortgage interest; to the construction industry that builds the homes; to municipalities that could no longer sell tax exempt bonds; to the investors who buy the bonds; etc. etc.

This says nothing about the effect of removing the current progressive income tax. Once everyone paid the same tax rate much of the tax burden carried by the higher income brackets would be shifted to the lower brackets.

So, it is hard to see where there would be enough votes to do anything substantial in this area.

Ditto! But it sure would be nice not to have to deal with taxes every year. I laugh when I hear people talking about tax cuts only for the rich. The top 10% pay 90% of the taxes and if it wasn't for there investments, we would grind to a halt.

 

[mrjimboalaska]

Cripes, no wonder I have no money, too many houses and boats I don't use.

and accountants that take your money too! oh, and a wife now.......
see, now that mine has taken everything I had, I get to take hers.......

 

[Wildcard]

The interest paid on a boat loan can be deducted if the boat is bigger the 28' and has a galley and head. The boat has to clamed as a second residence.

No other costs can be deducted, unless you charter the boat out which is a whole different subject.

Use a Marine finace company to find a bank loan if you don't want to use a home equity loan.
Trident Funding in MD and Essex Credit in CT and MA

Thanks for the info but I don't think you dead on with the size. Either way, no worries for this boat.

 

[Cacia]

Thus, if we went to a flat tax all that social engineering would be cast aside.

that would be great....since I don't beleive the government has that authority.

hmm. maybe I should ask JB to move onto the boat? and just let him "sleep over"?

 

[Wildcard]

that would be great....since I don't beleive the government has that authority.

hmm. maybe I should ask JB to move onto the boat? and just let him "sleep over"?

Only the media does.....