I have hear that (In the US) when you buy a sailboat suitable to live aboard
the interest paid on the loan are tax deductible.
I would appreciate if someone can enlightens me on this subject.

TIA

"Denis Marier" wrote in message
...
I have hear that (In the US) when you buy a sailboat suitable to live
aboard
the interest paid on the loan are tax deductible.
I would appreciate if someone can enlightens me on this subject.

TIA

If it has a head and galley, then you can deduct it as a 2nd home. That
feature was a real selling point with my wife.

-Greg

"Dene" wrote in message
. ..

"Denis Marier" wrote in message
...
I have hear that (In the US) when you buy a sailboat suitable to live
aboard
the interest paid on the loan are tax deductible.
I would appreciate if someone can enlightens me on this subject.

TIA

If it has a head and galley, then you can deduct it as a 2nd home. That
feature was a real selling point with my wife.

-Greg

True enough, but that's not the end of the story of course. The IRS can
audit you nevertheless. You will need to show that you actually have been
using it as such. In addition, if it's very close to where you live, they
may disallow it. I believe it also has to have sleeping accomodations. I'm
not a CPA, so I suggest asking one before you attempt it. "Vacation" homes
are one of the many red flags that could (but don't always) precipitate an
audit.

--
"j" ganz @@
www.sailnow.com

"Capt. JG" wrote in message
...

True enough, but that's not the end of the story of course. The IRS can
audit you nevertheless. You will need to show that you actually have been
using it as such. In addition, if it's very close to where you live, they
may disallow it. I believe it also has to have sleeping accomodations. I'm
not a CPA, so I suggest asking one before you attempt it. "Vacation" homes
are one of the many red flags that could (but don't always) precipitate an
audit.

--
"j" ganz @@

www.sailnow.com

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.

John Cairns

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.

"John Cairns" wrote in message
...

"Capt. JG" wrote in message
...

True enough, but that's not the end of the story of course. The IRS can
audit you nevertheless. You will need to show that you actually have been
using it as such. In addition, if it's very close to where you live, they
may disallow it. I believe it also has to have sleeping accomodations.
I'm not a CPA, so I suggest asking one before you attempt it. "Vacation"
homes are one of the many red flags that could (but don't always)
precipitate an audit.

--
"j" ganz @@

www.sailnow.com

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.

John Cairns


I thought I said that... eat, sleep, head...

--
"j" ganz @@
www.sailnow.com

"John Cairns" wrote in message
...

"Capt. JG" wrote in message
...

True enough, but that's not the end of the story of course. The IRS can
audit you nevertheless. You will need to show that you actually have been
using it as such. In addition, if it's very close to where you live, they
may disallow it. I believe it also has to have sleeping accomodations.
I'm not a CPA, so I suggest asking one before you attempt it. "Vacation"
homes are one of the many red flags that could (but don't always)
precipitate an audit.

--
"j" ganz @@

www.sailnow.com

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.

John Cairns

Perhaps I'm missing what you're saying by "there are no such requirements."

--
"j" ganz @@
www.sailnow.com

You said:

You will need to show that you actually have been
using it as such [second home]. In addition, if it's very close to where you live, they
may disallow it.

There is no IRS requirement for either of the above that I am aware of.