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KLC Lewis

"Mark Borgerson" wrote in message
.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.

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.

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