"Capt. JG" wrote in message
...
"Maxprop" wrote in message
nk.net...

"Capt. JG" wrote in message
...
"Maxprop" wrote in message
ink.net...

Once again, the IRS might like to have a chat with you. You must show
a profit within five years or the write-offs become retroactively
taxable.


NO. Totally incorrect. There is no law nor IRS ruling that says I have
to make a profit. If I can show that I've made a good faith effort to
make a profit, that's all that's required. Suggestion: keep your day
job.

You'd be well advised to check that out, John. According to the Uniform
Tax Code of the IRS, you have five years to make a profit, after which
your business is no longer considered a business. Got a good lawyer?

It's just not true Max. They may consider it a hobby, but if I can show
that it's an ongoing business, there's nothing they can do. My father, for
example, had a paper loss for 14 years in a row. Of course, they audited
him, but he won every time. After the third audit, he told them they would
be liable for his expenses, and on the fourth audit, he collected from
them.

Oh, I'll bet those audits were a bundle of fun. Sorry to hear that ol' dad
wasn't overly successful. Hope you're doing better. What do you do, by the
way?


Did you miss the smiley face, Jon? There are always investments in real
estate everywhere and in all price ranges, but I'm betting you can't
afford the ones that will give your the rate of return you need to offset
the interest on a boat loan.

Don't take that bet. I don't need the money. I have a good strategy for
rates of return, but thanks for your concern. g (Didn't miss it, btw)

I'd really like to hear about this "strategy."

But only the interest on the loan can be written off, not the entire
payment, the dock fee, and the other things you claim to write off.

Of course.. interest on the loan can be written off. A sizeable portion of
the other expenses can be written off as business expenses. I could use
the boat 50% as a vacation home 50% as a business. There's nothing wrong
with that at all.

Not unless the IRS disagrees.

I'll bet yours will be Bubba's roommate at Leavenworth, if its he who's
been advising you.

I like my privacy. A private suite would be more to my liking. g

I was talking about your accountant, but what the hell, if going to prison
floats your boat, go for it.

Max