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

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

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

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

Insurance is fun ...
A totally different order of value, but when I was organising insurance on
my 18 ft clinker ( ? lapstrake?) fishing boat it took a little time to
persuade the insurance company that since it was diesel, petrol fires were
not an issue. Now we proceed to the routine question and answer part of the
process.
Length? 18 ft ( I'll translate answers to USA units ...)
Power? 10 HP
Max speed ? 6 knots
Do you want the water ski extension cover ?

Enough said.
David


"Glenn Ashmore" wrote in message
news:2TdAg.8272$ok5.1613@dukeread01...
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

My recollection (I'm retired and no longer an attorney) is that the
yacht is taxed the same as a second home, and that construction interest
is deductible. I suggest you check publication 936 at the IRS website.

Glenn Ashmore wrote:
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.