On Jan 29, 5:57 pm, "NE Sailboat" wrote:
Prior to the mid 1980's ,, one could decuct the interest on a yacht loan.
But,, that ended. And, of course; right after that the sailboat business
went down the drain.

There are ways around this, of course. If you rent out your boat then you
can take a depreciation etc.

Similar to owning any rental property.

I believe the boat as a rental would come under the passage investment rules
of the IRS.. might be wrong there, though.

It isn't a very good idea as far as I am concerned. The boat would need to
be insured as a charter boat,, that must cost a fortune.

===="KLC Lewis" wrote in message

et...





"Mark Borgerson" wrote in message
t.net...
In article ,
says...
On Sun, 28 Jan 2007 20:27:00 -0800, Mark Borgerson

said:

You can't deduct more expenses than you
have income from the business.

What is your basis for that conclusion?

The fact that the IRS has a "Hobby Loss" segment in the tax code.

On the assumption that you won't turn a profit sufficient to meet the
test,
I'll accept that. But not the general proposition that you can't in any
year
deduct more expenses than you have income from a business.

My original response wasn't very clear. I should have said that you
can't deduct more expense than income on a continuing basis. After a
few years (two or more depending on the quality of your lawyers), the
IRS will consider the enterprise a hobby rather than a for-profit
business and your deductions will be limited to the amount of income.

Don't know about the States, but in Canada all you have to do is
incorporate
a holding company (less than $1000) and have the company own the boat
and rent it
back to you . . . then the company can deduct interest, depreciation,
repairs
and maintenance, etc. Of course, it isn't quite as simple as that,
but it can be
very cost effective if you look into it and do it properly . . .

Trish



If there was an easy way to make all boat expenses deductible, someone
would have written the book by now!

Am I correct in assuming that you could still deduct monthly loan
payments if the boat qualifies as a primary or secondary residence?
That won't help with operating expenses, though.

Mark Borgerson

If the boat qualifies as a second home, I believe that you can deduct the
*interest* paid on it during the year -- but not principle.- Hide quoted text -

- Show quoted text -