Interest tax deductible on boat loans
Actually, there are no such requirements, though I've been told that there
were in the past. This was from a professional tax preparer. All the boat
has to have are places to sleep, eat and go. While I had loans I wrote off
my first two boats in this fashion, as second mortgages.
That is my understanding also, and my deductions have never been
challenged. The only restriction that I am aware of is that you are
only allowed one "second home" deduction. If you have a summer place
and a boat, or two cruising boats, you have to choose which to take the
deductions on.
It is also my understanding that there is a movement afoot in
Washington to eliminate the second home deduction entirely. I'm not
sure how far this has progressed but it would probably be a good thing
to write your representatives about.
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