I have confirmed that yacht mortgage interest is deductible as long as you
only have one primary residence and the boat has a head, a place to sleep
and a galley. What I haven't been able to confirm is if the interest on the
construction loan is deductible.
Insurance is not a problem. I have had it on Rutu for 3 years now once I
past the $30K barrier. All I wanted was fire and windstorm coverage but
there is no such thing as a "builders risk" policy for boats so I have a
full yacht policy. Premium is based on the percent complete of the
estimated finished value. (Plus the cost of the simi-annual survey) If
pirates invade my back yard or it sinks in the mud puddle out back of the
shed I am covered. :-)
--
Glenn Ashmore
I'm building a 45' cutter in strip/composite. Watch my progress (or lack
there of) at:
http://www.rutuonline.com
Shameless Commercial Division:
http://www.spade-anchor-us.com
"Jim Conlin" wrote in message
. ..
My memory is fuzzy, but i recall that mortgage interest is deductible only
on a primary residence. Further, the lender's sense of security takes a
big
hit if the asset securing the loan can be trucked away. I'd first explore
borrowing against the first home.
"Steve Lusardi" wrote in message
...
Glenn,
Good luck. Pay close attention to the insurance requirements the mortgage
mandates. You may find them unacceptable as well as unaffordable.
Steve
"Glenn Ashmore" wrote in message
news:0X7Ag.8223$ok5.4280@dukeread01...
In accordance with my original plan for paying for Rutu I am going to
have
to finance the last $30K for spars, sails and the last items needed for
commissioning. I can't get a permanent loan until she is finished.
Within the next couple of months Rutu will be spruced up enough to give
my
banker a tour and get an interim loan until she is finished and I get a
permanent boat loan. In IRS parlance Rutu has 3 bedrooms, 2 baths and
a
kitchen which qualifies here for the second home mortgage interest
deduction. It will still be a year before she is in the water. Anyone
know if the construction interest is deductible on a yacht? I know it
is
on a regular house.
--
Glenn Ashmore
I'm building a 45' cutter in strip/composite. Watch my progress (or
lack
there of) at: http://www.rutuonline.com
Shameless Commercial Division: http://www.spade-anchor-us.com