Sea Ray Tax Question

[hd2002hd]

So, it is possible to claim your Sea Ray as a 2nd home on your taxes, but what else can you claim? Slip fee since you have to have one? Coast Guard registration fees? Taxes, fees, etc. if you purchased in the tax year? Anything else?

 

[JimT]

Assuming your boat qualifies, you can claim the interest on the boat mortgage and the personal property taxes if your states assesses such. Slip fees, coast guard registration, no.

 

[mjmason1]

To claim it as a second home, which only lets you claim the loan interest, it has to have a head, place to sleep and a place to cook. Claim it while you can. Congress is trying very hard to do away with that deduction.

 

[Wet Dogggg]

The above is 100% correct.

 

[Paul_P]

Does the interest deduction vary state to state or is this a federal exemption?. Will most/ all accountants know about this deduction?.

 

[JimT]

Does the interest deduction vary state to state or is this a federal exemption?. Will most/ all accountants know about this deduction?.

It's both a federal and state deduction. Any tax preparer will know of it.

 

[Rich122]

Provided both your home and boat mortgage combined don't exceed 1.1 million the interest is 100% tax deductable. Over 1.1 million the portion over 1.1 get a reduced % to deduct

 

[FastF7Rider]

My accountant tells me that if you make enough to get hit with the AMT, interest on a boat or motor home is not tax deductible.

 

[rondds]

Other possibility is to buy the boat with a home equity loan (rather than a "boat" loan). That interest should be tax deductible.

 

[docofthebay]

Other possibility is to buy the boat with a home equity loan (rather than a "boat" loan). That interest should be tax deductible.

This is the smartest answer. My acct said that it was possible and legal to deduct on a boat but it did send "audit me" flags.

 

[TimTech]

So, it is possible to claim your Sea Ray as a 2nd home on your taxes, but what else can you claim? Slip fee since you have to have one? Coast Guard registration fees? Taxes, fees, etc. if you purchased in the tax year? Anything else?

As others have stated, yes you can claim the interest on the loan if your boat has eating & sleeping facilities plus a head. You can claim the part of your annual registration fee that is based on your boat's value (ad valorem personal property tax). You can also opt to claim the sales tax you paid on your boat purchase instead of claiming your state and local income tax (pick the one that is greater). A good read is here.

 

[rondds]

I'm not an accountant, but I did stay at a Holiday Inn Express.

 

[wetpaint]

1) Equity Line of Credit for smaller boat loans
2) Set boat up as LLC for all boat expenses
3) Boat loan for larger loans

 

[DaFish]

On the state return fr Wisconsin, this deduction is disallowed

 

[jobofly]

so what if i took out a personal loan to buy my boat. can i deduct the interest from that since my boat does qualify?

 

[rcknecht]

so what if i took out a personal loan to buy my boat. can i deduct the interest from that since my boat does qualify?

Yes, as long as you aren't already taking a second home deduction. Ron has the best answer, use a equity loan...

 

[JimT]

Yes, as long as you aren't already taking a second home deduction. Ron has the best answer, use a equity loan...

In order to deduct the interest the debt must be secured by a lien on the boat. If the personal loan is unsecured you cannot deduct the interest even if the loan proceeds were used to purchase the boat.

 

[my DOG HOUSE]

Provided both your home and boat mortgage combined don't exceed 1.1 million the interest is 100% tax deductable. Over 1.1 million the portion over 1.1 get a reduced % to deduct

$1,100,000 in interest! WTF, I am in the wrong game!

 

[HUMPH]

Total mortgage, not interest.

 

[alnav]

I believe there is a limit of $100K loan value for deductibility of home equity loans.