On Wed, 04 Jan 2006 08:37:20 -0500, Harry Krause wrote:

JohnH wrote:
On Wed, 04 Jan 2006 08:00:04 -0500, Harry Krause wrote:

JohnH wrote:
On Tue, 03 Jan 2006 22:36:08 -0500, DSK wrote:

FWIW we have used the boat loan interest deduction for years. There are
several criteria, among them that the boat has to have a potty & a galley,
and you have to sleep on board for a certain number of nights per year.

NOYB wrote:
How many nights per year?

I don't know for sure. Ask an accountant. It's the same as
the number of nights you need to sleep in a 2nd home for it
to qualify for the same deduction.

DSK
No you don't, unless you are renting out the second home also.


You mean I have to deduct the rent I receive from the raccoons who are
wintering in my old barn?

No. You must *claim as income* the rent you receive from said raccoons. If you are
also paying interest on a loan securing the barn, then you could, meeting all other
requirements, claim the barn as rental property and deduct the mortgage interest
you're paying on the barn.

If the barn is 'rental property', then you can also claim a host of other 'expense'
deductions for the property, like depreciation.

Be careful. Once you spend too many nights in the barn, you must then treat it
differently! Memorize IRS Pub 527.



Ahh, thanks. I think my barn was fully depreciated about 50 years ago.
The only thing holding it together is the red paint. And raccoon poop.

There's a barn builder active locally, and he is putting together one
hell of a barn for a fellow down the road a couple miles. It's a work of
art. I've been wanting to stop and find out what it costs but I probably
should sell that Parker first.

Become very aware of the differences between 'capital improvement' and 'repair
expenses' before making decisions about getting work done on the barn while it is a
rental property.

--
John H.

"Divide each difficulty into as many parts as is feasible and necessary to resolve it."
Rene Descartes