Tax Write Off

[OutCole'd]

What does it take to write off your boat for taxes? Are you better writing it off as a second home, or a business expense for taking out clients? Just curious.
Thanks,

[Three Days Only]

I used my old boat as a second home. almost 100% of the interest was tax deductible . It had a cabin with a bed and toilet (portapotty). Coleman stove (in the garage)for cooking if they asked. Sold it for a cat, no cabin, no nothing!!!! No more tax right off. Not sure how you could use it as a business expense. My accountant was against it!!!! At least not in my line of work, and not with my boat.

[OutCole'd]

I would be getting a deck boat, so no cabin, but it could have a porta potty, does it need a sink?

[Dave C]

if you write off the boat as a "business expense" you might as well save a spot at the dinner table for the IRS auditor because he might be there for awhile. DON"T do it. Big time red flag.
you can write off the interest of the loan on your personal deductions as a "second home" if it meets those requirements (toilet, bed & stove)
There is a distinction here that I don't have enough time or space to explain

[mikev]

tax write-off info for boats (http://www.boats.com/boatsbank/finan...contentid=2840)

[OutCole'd]

The toilet & stove I can get by with, but what qualifies for a bed? How about a sleeping bag?

[OutCole'd]

Thanks MikeV, here is a paragraph I copied from that site that has me a little nervous.
Now, before you get your hopes too high, the boat must "reasonably" be livable — your 15-foot jet boat doesn't qualify. The IRS has generally determined, however, that any boat that has at least one berth, a permanent galley, and a head (even if it's just a Porta-Potti) qualifies for the second home deduction.
What qualifies a a berth, and a permanent galley? A coleman & a sleeping bag?

[beer hunter]

OC'd, if you have a home with sufficient equity you can get an “equity line of credit” (second mortgage) and simply write a check for your new boat and write off all the interest without the hassle of determining if you boats qualifies as a second home. What kind of deck boat are you looking at?

[ROZ]

Originally posted by OutCole'd
Thanks MikeV, here is a paragraph I copied from that site that has me a little nervous.
Now, before you get your hopes too high, the boat must "reasonably" be livable — your 15-foot jet boat doesn't qualify. The IRS has generally determined, however, that any boat that has at least one berth, a permanent galley, and a head (even if it's just a Porta-Potti) qualifies for the second home deduction.
What qualifies a a berth, and a permanent galley? A coleman & a sleeping bag?
Do the 2 front bench seats convert into a bed?
I'd say the easiest way is to tap into your equity line of credit(provided the equity is there). No questions about the writeoff.
It use to be that the boat had to be 25ft long as well....

[OutCole'd]

Originally posted by beer hunter
What kind of deck boat are you looking at?
Still unsure, narrowed it down to two, and have only driven one of them.