Hi, how do you depreciate a boat? I am about to start a snorkeling
tour company in the Keys. The boat I am looking at is about 150K, 1-2
years old. How is that depreciated? Obviously, I'd prefer as soon as
possible so I can write off as much as possible. I'd like to know the
rules. Is it 30% year?

Thanks,

Carlos

calberto wrote:

Hi, how do you depreciate a boat?

Take delivery from a dealer/broker? :-)

I am about to start a snorkeling
tour company in the Keys. The boat I am looking at is about 150K, 1-2
years old. How is that depreciated? Obviously, I'd prefer as soon as
possible so I can write off as much as possible. I'd like to know the
rules. Is it 30% year?

You should check with an accountant, or check the IRS site on the
web, but the general rule for capital expenditures that large,
IME, is 5 years. So, roughly $30K/year in deductions.

Keith Hughes

Nope, the day you bought it, it's worthless.

Seriously, check with an acountant and depricate on the proper schedule.

God luck with the business.

B

"calberto" wrote in message
om...
Hi, how do you depreciate a boat? I am about to start a snorkeling
tour company in the Keys. The boat I am looking at is about 150K, 1-2
years old. How is that depreciated? Obviously, I'd prefer as soon as
possible so I can write off as much as possible. I'd like to know the
rules. Is it 30% year?

Thanks,

Carlos

I believe double declining balance depreciation over 6 to 8 years is
both permitted and probably represents a truer picture of what is
actually happening but with most businesses your first couple of years
you may not have enough profit to use that much depreciation and leave
little to shelter you once the business starts making money. It would
probably be more usefull in the 3rd or 4th year than the first and second.

You really need an accountant to examine your business plan and advise
what schedule to use.

calberto wrote:
Hi, how do you depreciate a boat? I am about to start a snorkeling
tour company in the Keys. The boat I am looking at is about 150K, 1-2
years old. How is that depreciated? Obviously, I'd prefer as soon as
possible so I can write off as much as possible. I'd like to know the
rules. Is it 30% year?

Thanks,

Carlos


--
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