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

Fred Dehl wrote:
It's hard to qualify for a deduction when YOU PAY NO INCOME TAXES IN THE
FIRST PLACE. The bottom FIFTY PERCENT of taxpayers pays ONLY FIVE PERCENT
of income taxes.

I see that a few people are still SHOUTING their stupid
political lies here. Obviously you did not bother to check
the IRS web site for actual tax figures. The truth is very
easy to find.

Hey Fred, got a boat?

As for the reason for tax deductions for the *interest* on
boat loans, it depends on your point of view. In one way, it
is an indirect subsidy for the banking industry. In another
way of looking at it, it's a fair way of stimulating the
economy by encouraging people to buy things.

FWIW we have used the boat loan interest deduction for
years. There are several criteria, among them that the boat
has to have a potty & a galley, and you have to sleep on
board for a certain number of nights per year.

DSK

"DSK" wrote in message
. ..
Fred Dehl wrote:
It's hard to qualify for a deduction when YOU PAY NO INCOME TAXES IN THE
FIRST PLACE. The bottom FIFTY PERCENT of taxpayers pays ONLY FIVE
PERCENT of income taxes.

I see that a few people are still SHOUTING their stupid political lies
here. Obviously you did not bother to check the IRS web site for actual
tax figures. The truth is very easy to find.

Hey Fred, got a boat?

As for the reason for tax deductions for the *interest* on boat loans, it
depends on your point of view. In one way, it is an indirect subsidy for
the banking industry. In another way of looking at it, it's a fair way of
stimulating the economy by encouraging people to buy things.

FWIW we have used the boat loan interest deduction for years. There are
several criteria, among them that the boat has to have a potty & a galley,
and you have to sleep on board for a certain number of nights per year.


How many nights per year?

"Harry Krause" wrote in message
. ..
Fred Dehl wrote:
Tamaroak wrote in news:576dnVxMv5qMfyTeRVn-
:

The poor in this country don't qualify for these deductions

It's hard to qualify for a deduction when YOU PAY NO INCOME TAXES IN THE
FIRST PLACE. The bottom FIFTY PERCENT of taxpayers pays ONLY FIVE
PERCENT of income taxes.


Your "facts" are wrong.

His facts are pretty damn close:
http://www.ctj.org/pdf/fsl2004.pdf


The bottom 40% pay only 7.7% of the taxes.

The top 20% pay 62.6% of the taxes.

The top 40% pay 81.6% of the taxes.

FWIW we have used the boat loan interest deduction for years. There are
several criteria, among them that the boat has to have a potty & a galley,
and you have to sleep on board for a certain number of nights per year.



NOYB wrote:
How many nights per year?


I don't know for sure. Ask an accountant. It's the same as
the number of nights you need to sleep in a 2nd home for it
to qualify for the same deduction.

DSK

NOYB wrote:
His facts are pretty damn close:
http://www.ctj.org/pdf/fsl2004.pdf


Why not go straight to the IRS? Get your "facts" from the
people who actually know and do not have an axe to grind.

And, if a fact is "almost" right then do you consider it a fact?


The bottom 40% pay only 7.7% of the taxes.

And is this a problem? If they receive only 7.7% (or
thereabouts) of the income, then that's ALL THE TAXES THEY
*_*_*SHOULD*_*_* PAY....

unless of course you believe that the poor & middle class
should work & pay taxes to subsidize the rich.

DSK

"DSK" wrote in message
. ..
NOYB wrote:
His facts are pretty damn close:
http://www.ctj.org/pdf/fsl2004.pdf


Why not go straight to the IRS? Get your "facts" from the people who
actually know and do not have an axe to grind.

And, if a fact is "almost" right then do you consider it a fact?


The bottom 40% pay only 7.7% of the taxes.

And is this a problem? If they receive only 7.7% (or thereabouts) of the
income, then that's ALL THE TAXES THEY *_*_*SHOULD*_*_* PAY....

The bottom 40% earn 10.4% of the income, but pay only 7.7% of the taxes.

The top 40% earn 77.9% of the income, but pay 81.6% of the taxes.


It should be a one-to-one correlation. In other words, if a certain segment
earns 77.9% of the income, they should pay 77.9% of the taxes.

"DSK" wrote in message
. ..
NOYB wrote:
His facts are pretty damn close:
http://www.ctj.org/pdf/fsl2004.pdf


Why not go straight to the IRS? Get your "facts" from the people who
actually know and do not have an axe to grind.

And, if a fact is "almost" right then do you consider it a fact?


The bottom 40% pay only 7.7% of the taxes.

And is this a problem? If they receive only 7.7% (or thereabouts) of the
income, then that's ALL THE TAXES THEY *_*_*SHOULD*_*_* PAY....

I'm all for everyone putting in no more than 20% of their income in taxes.
This includes all taxes at all levels and for anything.

unless of course you believe that the poor & middle class should work &
pay taxes to subsidize the rich.

When the bottome 40% are only putting 7.7% into the Fed's coffers then they
shure as hell aren't subsidizing anyone. If they want to pay more taxes then
they can go out and get a job that pays more money!

NOYB wrote:
His facts are pretty damn close:
http://www.ctj.org/pdf/fsl2004.pdf


The bottom 40% pay only 7.7% of the taxes.

The top 20% pay 62.6% of the taxes.

The top 40% pay 81.6% of the taxes.

And we effectively have a flat tax to within about 1.7%.

Why would the wealthy complain?

Shares of
Average Total Total
cash income taxes
income now
----------------------------------------
Lowest 20% $ 10,400 3.4% 2.2%
Second 20% 21,200 7.0% 5.5%
Middle 20% 34,500 11.7% 10.5%
Fourth 20% 56,300 19.2% 19.0%
Next 15% 96,700 25.2% 26.5%
Next 4% 201,000 14.4% 15.3%
Top 1% 978,000 19.1% 20.8%
ALL $ 56,800 100.0% 100.0%

"DSK" wrote in message
.. .
FWIW we have used the boat loan interest deduction for years. There are
several criteria, among them that the boat has to have a potty & a
galley, and you have to sleep on board for a certain number of nights per
year.



NOYB wrote:
How many nights per year?


I don't know for sure. Ask an accountant. It's the same as the number of
nights you need to sleep in a 2nd home for it to qualify for the same
deduction.


There are no occupancy requirements whatsoever to qualify for the interest
deduction on a second home (boat) if the home or boat is used purely for
personal use. The only time an occupancy requirement plays into the mix is
if the second home is rented for part of the year or the boat is chartered
out for part of the year.