wrote in message
ups.com...
Harry:

Keep it about boats please.


And my reply was.

"Tamaroak" wrote in message
...
I vote for no deductions for second homes or boats or whatever. The poor in
this country don't qualify for these deductions and our government is
widening the gap evermore.

Capt. Jeff

The poor do not pay income taxes.

wrote:
I see no reason why second home loans or boat loans should be
deductible on income tax. This is simply a subsidy for the rich. Now
that I have made myself so popular here, what do y'all think?


Being in OZ probably I shouldn't comment but agree it does seem a bit
odd. Certainly hard to justify on the grounds of taxation being for the
general well being of society in general & certainly seems open to
exploitation.

Here you can only claim a deduction on anything if the claim is directly
related to generating taxable income. That mostly rules out a domestic
home or a second not rented out holiday house or a pleasure boat etc,
regardless of it's fittings. A boat used to create "taxable" income is
fully claimable, however it needs to be in survey with the relevant
marine board or classification society.

Even then the claimant needs to show that the "business" will eventually
lead to some "taxable" income. How long a lead time depends on the
venture but a boat would need to be viable PDQ if you didn't want a tax
audit. Rental boats have been the subject of close scrutiny for some
years now, where the "investor" buys the boat but another manages to
asset for them.

Here "investment" properties are treated as a business so inputs are
deductible especially the interest on the capital. This has been the
main driver behind every man & his dog having a negatively geared rental
property & the inevitable glut of new ones being built. The crunch when
if comes will not be pretty, I've seen 3 over my life:-)

K

wrote:
I see no reason why second home loans or boat loans should be
deductible on income tax. This is simply a subsidy for the rich. Now
that I have made myself so popular here, what do y'all think?


Nice job, DB.

Fire up a political discussion with a veiled reference to boating.

Gee, under this program, I could post, "Do you suppose that if GWB
succeeds in running the deficit up to the point where it tanks the
whole economy or creates hyper inflation that it will affect boating?"
I don't know that such a phony ruse really cuts it. We could get a
whole squad of folks arguing that its OK to start 10 threads a day
ragging on some individual poster or another because "I based my
insults on his choice of boat, lack of boat, or etc......"

Notice the results? We've got posts yakking on about Harry this, Harry
that. We've got posts in here from people who *never* participate in
boating discussions, and none of them are positive or constructive.
We've got a few guys who have struggled mightily to help change the
tone of the NG from what it has been to what it can improve to become
who are unable to resist the bait and are slipping back into their old
ways- right here in this thread.

The sad thing is- when you fire up a political discussion in this group
you don't even get a decent political discussion. You see the same
dozen guys calling one another childish names and cut 'n pasting
propaganda from one side or the other.

Here's a link to a whole batch of political newsgroups:

http://www.politicalindex.com/sect29.htm

Why not check them out?

Sorry Chuck:

You see I got bored when they drifted away from deductions for boats.
I do notice that most people agree on eliminating tax deductions for
boat laons and second homes. That is interesting and pertinent.

On 3 Jan 2006 07:39:27 -0800, wrote:


wrote:
I see no reason why second home loans or boat loans should be
deductible on income tax. This is simply a subsidy for the rich. Now
that I have made myself so popular here, what do y'all think?


Nice job, DB.

Fire up a political discussion with a veiled reference to boating.

Gee, under this program, I could post, "Do you suppose that if GWB
succeeds in running the deficit up to the point where it tanks the
whole economy or creates hyper inflation that it will affect boating?"
I don't know that such a phony ruse really cuts it. We could get a
whole squad of folks arguing that its OK to start 10 threads a day
ragging on some individual poster or another because "I based my
insults on his choice of boat, lack of boat, or etc......"

Notice the results? We've got posts yakking on about Harry this, Harry
that. We've got posts in here from people who *never* participate in
boating discussions, and none of them are positive or constructive.
We've got a few guys who have struggled mightily to help change the
tone of the NG from what it has been to what it can improve to become
who are unable to resist the bait and are slipping back into their old
ways- right here in this thread.

The sad thing is- when you fire up a political discussion in this group
you don't even get a decent political discussion. You see the same
dozen guys calling one another childish names and cut 'n pasting
propaganda from one side or the other.

Here's a link to a whole batch of political newsgroups:

http://www.politicalindex.com/sect29.htm

Why not check them out?

A-friggin-men!

--
John H.

"Divide each difficulty into as many parts as is feasible and necessary to resolve it."
Rene Descartes

wrote:

I see no reason why second home loans or boat loans should be
deductible on income tax. This is simply a subsidy for the rich. Now
that I have made myself so popular here, what do y'all think?


The *interest* paid is tax deductible, not the loan or the loan payment.
If the "rich" buy a boat, why would they not pay cash? If they
finance the boat, they are still paying interest and deducting only that
amount. So they are still paying interest to a bank and getting a
refund on a portion of that.

Do you itemize? It doesn't seem like you get how that works.

I got a home equity loan for my modest boat. While I still pay
Prime-.25% in interest, I can deduct that interest on my income taxes.
Let's say I paid $300 in interest, for example, I would get a tax credit
of roughly $100.00. Now apply that to the "rich" you refer to for the
purchase of a $1MM yacht. You will see it's a relative figure. It
*might* land them in a different tax bracket, but not likely if we are
talking about that kind of cash.

Dan