mortgage interest deduction?

boatman37

Well-Known Member
Jun 6, 2015
4,211
pittsburgh
Boat Info
2006 Crownline 250CR. 5.7 Merc BIII
Previous: 1986 Sea Ray 250 Sundancer. 260 Merc Alpha 1 Gen 1
Engines
5.7 Merc BIII
Just getting tax papers ready and I got a 1098 from our lender on our boat. My understanding was it had to be classified as a yacht (at least 26'). Ours is 25' so I figured we couldn't deduct it. So I started looking and everything I found only mentions berth, galley, and head. Nothing about it having yacht designation or nothing about minimum length. Any ideas? Has it changed? I'm sure my CPA will figure it out but just curious.
 
Here is an informative article on the subject. The pertinant advice is "If your boat has bathroom, cooking and sleeping facilities, then for IRS purposes, it qualifies as a home and you might qualify for a deduction on your taxes."

I've never heard of the 26' rule. Could you be conflating it with USCG rules for lighting and safety equipment?
 
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You could be right. We didn't have a loan on our last one so never had to think about it. I thought it had to be 26' but could be wrong.
 
Yup. Anything with a bed, kitchen and bathroom can be a home, on land or water.
 
I started doing it with my 22-footer. As far as I know, the rule simply centers around being able to sleep, cook and poop on it. There might be some other stipulations around "being able to prove at least 2 weeks a year on it" and/or if you already have a second home then you can't also claim the boat. But I always just handed my info over to my accountant and he said "no problem". I'm not sure about the new laws.
 
Cool. No 2nd home here so the boat would be it. Not sure if we will itemize. We always have in the past but not sure under the new tax laws. I have a CPA that does my taxes so I trust he will get it right but I was curious as I had thought there was a minimum length
 
tiara in the snow 01.JPG
I was audited on this issue in the late 1990s and sent them brochure pages showing the galley, head and berth. That ended it. As someone mentioned, it may not matter with the new expanded standard deduction.
 
Standard deductions went from 12K to 24K this year. Not much to do any more with itemizing and filling out forms....Don't think interest deduction on the boat loan matters any more...at least for me.
 
tiara in the snow 01.JPG
Standard deductions went from 12K to 24K this year. Not much to do any more with itemizing and filling out forms....Don't think interest deduction on the boat loan matters any more...at least for me.
The standard deduction of 24,000 is for those who file jointly. It varies by individual return.
 
tiara in the snow 01.JPG
That's a beautiful picture of your boat. Was that a professional that took it or maybe a drone?
Thanks, but no. Shot was taken from our bedroom window. Looks like a drone shot because the elevation is from the second story at that end of the house.
 
If your itemized deductions are less than $24,000 (New Standard Deduction for married filing jointly), it won't matter.
 
yeah. i don't think we will be itemizing this year. we normally do but will be losing quite a bit of the student loan interest we paid (paid over $8000 in interest this year). max you can deduct this year is $2500 and that decreases after $60,000. likely be taking the standard deduction but will see
 
We need a flat tax with no deductions for anything. A fixed percent of anything you earn over an established national poverty line.
Get it all done on a postcard.
 
We need a flat tax with no deductions for anything. A fixed percent of anything you earn over an established national poverty line.
Get it all done on a postcard.
Puh-leeeez. Then the "rich" aren't paying their "fair share" (heavy sarcasm)
 
Puh-leeeez. Then the "rich" aren't paying their "fair share" (heavy sarcasm)

Easiest and most fair way to figure it out. Set a fixed federal tax rate based on what it costs to run the federal government then stick with it. Ecenimy does good, the thief’s in DC get more money to play with. Economy has a bad year, no borrowing allowed, they have to make it work on less money.
 

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