Say "bye bye" to your boat interest deduction.

[jmunro123]

Yep !! +2. :smt021.

I lived here all my life and its getting so F'd up here. :smt100

I'm moving to Canada. :thumbsup:. If they will forgive me for my last visit there. :grin:

You are welcome to come to Canada but keep in mind our government does not allow interest deduction on homes or boats. Only on items that are used to generate and business income. Like a loan on a car used to be a taxi or something like that. Our government can teach your government a thing of two about generating tax income!!

 

[Woody]

I just completely read both of the proposed budget bills...my takeaway...there's no significant short term difference. Both bills have significant budget INCREASES over the next five years. The Reid bill more than the Boehner bill...but not by friggin' much. Both sides are playing games with the concept of budget cuts being decreases in the amount of future deficit spending.

I am simply sick.

I hope you don't mind the addition

 

[jitts3]

I personally do not understand why the govt ever thought it was a good idea to pick who gets tax breaks and won doesn't. And it seems like the breaks go to those in debt and those like me who struggle to stay out of debt get nothing. I understand that a tax hike on anything is a bad idea, but I feel this maybe should have never been. Why not write off other toys, ATVs, RVs, hell, why not guns for sport shooting. I enjoy cigars. Can I deduct that too. Where does it end?

So let me be clear. I am not for doing away with the deduction. I just question if it should have ever been.

 

[Jack F]

This guy sums it up beautifully.
[video=youtube;8SGyVNippvA]http://www.youtube.com/watch?v=8SGyVNippvA&feature=player_embedded#at=56[/video]

Right on the money.

These politicians remind me of fish schooling, just replace the word fish with politician and that’s what they’re doing.


Schooling of fish refers to their ability to survive and reproduce in more numbers. A school consists of many fish of the same species swimming in unison (or harmonious pattern) in the water. It is a very common pattern seen among at least 80% of the species of fish.


The most important object of fish moving in schools is to protect themselves from enemies. It is the same rule that applies to everyone and the same rule we were taught when we were kids. There is a less chance of being attacked when one is in a group. It is easy to chase a single fish and catch it for a predator. But it is not easy to catch a fish which is in a group. It has another benefit too. A group of fishes can defend themselves easily and this makes the predator think twice before attacking a school of fish.


Fish moving in a school can respond easily to the direction and speed changes. A school of fish changes the direction and speed very swiftly keeping the connection among themselves the same.

Moving in schools helps them in finding the food easily too. Since there are more number of fish, if one finds the food then all the others can also go for the same food. When moving alone, it may not be the case.

 

[Four Suns]

I personally do not understand why the govt ever thought it was a good idea to pick who gets tax breaks and won doesn't. And it seems like the breaks go to those in debt and those like me who struggle to stay out of debt get nothing. I understand that a tax hike on anything is a bad idea, but I feel this maybe should have never been. Why not write off other toys, ATVs, RVs, hell, why not guns for sport shooting. I enjoy cigars. Can I deduct that too. Where does it end?

So let me be clear. I am not for doing away with the deduction. I just question if it should have ever been.

I actually agree with you. The whole concept they have is to charge a high tax rate on income and then they have power to selectively lower it based on who they like and who they don't. Actually, I think the concept was supposed to be selectively lower it such that they can "drive" the spending and economy as they see fit... but it's become a thing of power on who they like and who they don't as they are all too freekin' stupid to use the tool correctly. I don't have an issue with removing the home mortgage or boat mortgage interest deduction but they need to lower the rates as well. Calling a home mortgage interest deduction a "tax expenditure" is horse poop.

That's why I like the flat tax on consumption much better...

http://fairtax.org

No power left in DC... and everyone pays and no one can cheat... and we have the added benefit of firing all the tax accountants, lawyers, and 140,000 IRS people... Let them go find a job where they add value to society and not find ways to manipulate rules.

 

[jitts3]

Gary,
You and I are on the same page...

 

[Woody]

I personally do not understand why the govt ever thought it was a good idea to pick who gets tax breaks and won doesn't. And it seems like the breaks go to those in debt and those like me who struggle to stay out of debt get nothing. I understand that a tax hike on anything is a bad idea, but I feel this maybe should have never been. Why not write off other toys, ATVs, RVs, hell, why not guns for sport shooting. I enjoy cigars. Can I deduct that too. Where does it end?

So let me be clear. I am not for doing away with the deduction. I just question if it should have ever been.

Now you're getting into how or how not tax code should be used to shape our society. When you go there you have to consider what agendas there may or may not be of the people in power(this is where conspiracy theories will surface). The home mortgage interest deduction supposedly was an attempt to help more folks achieve the American Dream...be home owners, but perhaps it was also originally just another disguised economic stimulus like a lot of tax code is.

 

[comsnark]

How is this thread not in the holding tank?

I personally do not understand why the govt ever thought it was a good idea to pick who gets tax breaks and won doesn't. <<snip>>

So let me be clear. I am not for doing away with the deduction. I just question if it should have ever been.

Isn't it obvious how tax breaks are determined?
It has much to do with the Golden Rule in my mind.

I actually agree with you. The whole concept they have is to charge a high tax rate on income and then they have power to selectively lower it based on who they like and who they don't. Actually, I think the concept was supposed to be selectively lower it such that they can "drive" the spending and economy as they see fit... but it's become a thing of power on who they like and who they don't as they are all too freekin' stupid to use the tool correctly.

I agree with this part. Except for the "too freekin' stupid to use the tool correctly" part. Oh they are using it correctly. . .just not for the purpose we want it to be used.

I don't have an issue with removing the home mortgage or boat mortgage interest deduction but they need to lower the rates as well. Calling a home mortgage interest deduction a "tax expenditure" is horse poop.

That's why I like the flat tax on consumption much better...

uh huh. In favor of flat tax. . . ok with eliminating deductions such as home mortgage interest. Why did you start this thread?

Now you're getting into how or how not tax code should be used to shape our society. When you go there you have to consider what agendas there may or may not be of the people in power(this is where conspiracy theories will surface). The home mortgage interest deduction supposedly was an attempt to help more folks achieve the American Dream...be home owners, but perhaps it was also originally just another disguised economic stimulus like a lot of tax code is.

It's all about gimicks and power.

One can really argue that the government should NOT be trying to manipulate the economy via the tax code. That is unAmerican. You can have a progressive tax code without any deductions whatsoever.
I am in favor of eliminating ALL deductions and credits. Lower base rates across the income scales to remain revenue neutral. . . .

 

[Four Suns]

How is this thread not in the holding tank?

Because it's about boating. Not just spitting venom.

uh huh. In favor of flat tax. . . ok with eliminating deductions such as home mortgage interest. Why did you start this thread?

Because I could.

I am in favor of eliminating ALL deductions and credits. Lower base rates across the income scales to remain revenue neutral. . . .

I agree. But that's not what they are doing now is it?

I've been on both ends of the tax scale... and a flat tax on consumption probably wouldn't save me much.... probably cost me more... but it makes a lot more sense that this progressive income BS that IS NOT WORKING...

 

[chuck1]

How is this thread not in the holding tank?

. . . .

It is getting close....

Thread started about boat taxes.

Have not had enough complaints/reports about it yet.

 

[twyant]

.
We all going to learn to do it the Dave Ramsey way soon depth free. Was just talking to my wife about some of the " CHANGE " we need to make like making sure we owe the government at the end of the year not them owing us they may not have the moneys to pay our tax refund. I am learning how this “CHANGE” Thing works. I was thinking about a new BOAT but mabe not good time for it but would like a "CHANGE"

 

[jitts3]

This is how the govt picks winners and loosers. I get that. But for now the boating public is considered to be rich. That is a conman thought in the handout community. Even I get that garbage from poor people in my family. By the way they seem to choose to stay that way no matter how much I talk to them and offer advise on how to better themselves.
The dens know their days are numbered so the only way they can show they try to their base is to attack others who have a little something. We are the next victim of that way of thinking.

 

[comsnark]

It is getting close....

Thread started about boat taxes.

Have not had enough complaints/reports about it yet.

We bow before the wisdom of the moderators.

 

[Turtlesboat]

People will still buy their boats in the Bahamas or caymans. States will still have their own taxing authority. Not much will change with a flat tax. I have to pay a freaking subway tax because I live near a subway. This is a private company with the authority to tax, how did that happen? Pretty soon we'll have ez pass in our boats to pay water tolls.

 

[jitts3]

People will still buy their boats in the Bahamas or caymans. States will still have their own taxing authority. Not much will change with a flat tax. I have to pay a freaking subway tax because I live near a subway. This is a private company with the authority to tax, how did that happen? Pretty soon we'll have ez pass in our boats to pay water tolls.

I hate to tell you but they are looking into that for cars and trucks. Instead of fuel taxes per gallon, pay per mile. Would require you to gave a GPS to charge you per mile driven. This could be brought to boats.

Also I ante to mention it but also, someone mentioned fuel taxes and roads and bridges. They have plenty of cash for infrastructure. If they would use that money collected just for roads and bridges on roads and bridges. They can't seem to keep their hands out of the cookie jar.:huh:

 

[tdschafer]

People will still buy their boats in the Bahamas or caymans. States will still have their own taxing authority. Not much will change with a flat tax. I have to pay a freaking subway tax because I live near a subway. This is a private company with the authority to tax, how did that happen? Pretty soon we'll have ez pass in our boats to pay water tolls.

Turtle,
I get the same crap here. I have to pay an MTA tax because I am self employed and live on Long Island where the LIRR runs!! I have used the train once in the last 20 years and that was to take my kids to a Rangers game last season!!!

 

[alnav]

I have to pay the NYC transit tax from here in Virginia because I have one employee who lives in the city.

 

[comsnark]

Four Suns:

I am having trouble with your last statement.

I agree that the current tax code is horribly, horribly broken.

But in my view it is not broken because it is *progressive*. It is broken because it is laden with special interest tax credits and goofball deductions. You could have silly Solar Panel tax deductions in a flat tax system just like you do in the current progressive system. The problem is the never ending tinkering to sponsor flavor-of-the-month bennies, not the fact that there are a few tax brackets in the code.

I am not sure if Ethanol subsidies, which hurt our gas powered boat engines, are part of the tax code or not, but this is the type of economic tinkering that certainly is lining someones pockets other than mine.

The mortgage interest deduction for "boats" or "second homes" in my view is one example of a special interest deduction. Yeah, yeah, yeah, I know. Half the people on this board are probably taking advantage of that deduction -> but it still boils down to a complication of the tax code that
1) Forces the general tax rates to be higher and
2) makes you need an account to do an income tax return.

The question is where do you stop once you start closing loop holes?
People here are whining about boat interest. What about PRIMARY RESIDENCE mortgage interest?

Well . . . I guess the subject is moot because certain key members of Congress have decided that since closing tax loop holes and ending special interest tax breaks represents an INCREASE in government revenue. . .we can't make any reform to the Tax code. It should be interesting to see how the current failures of the government to make a decision results in interest rates for things like "boats" in the next few years.

I suspect boat financing will get more expensive in the next few years.

 

[docofthebay]

I have no idea who I will support for president yet, but as I am a republican, and my wife is a republican member of the AL legislature, I know it will be Republican. I had dinner two weeks ago with Herman Cain and am very impressed with him. He is an advocate for the Fair Tax and would love to ultimately see all the tax laws replaced with the national sales tax with no focused deductions. I'm still keeping an open mind to all the others, but my take home impression of Mr Cain was good.
Bottom line: there is a light at the end of the tunnel and maybe some of the tax reforms everybody has advocated here has a chance of happening. And then we might could afford the fuel for our boats!

 

[Steve S]

Here is a link from the National Marine Manufacturers Association (NMMA) where you can easily send a letter to your Senator regarding this issue.

http://capwiz.com/nmma/home/

Just click on take action and follow the prompts...