Boat as 2nd home & Taxes

[Robbin]

My boss owns a powerboat which sits in storage most of the year. His wife is a CPA and they write their boat off as a 2nd home on their Federal taxes. I have recently purchased a 1984 Catalina 22 and would like to learn the particulars. Does anybody have any experience with this? Any pointers or advice?

 

[Michael]

the Best Tax Write -Off

Interest on a boat used as a second home is deductible as home mortgage subject to mortgage interest rules. The qualification is that the boat must have basic living accommodations such as sleeping space, cooking facilities and toilet facilities. Also local law must allow for such use. You should check if there is a minimum length requirement.

 

[Matt]

Second home

Here are the rules, straight from the IRSLines 10 and 11 of Form 1040 Schedule A instructions:Home Mortgage InterestA home mortgage is any loan that is secured by your main home or second home. It includes first and second mortgages, home equity loans, and refinanced mortgages.A home may be a house, condominium, cooperative, mobile home, boat, or similar property. It must provide basic living accommodations including sleeping space, toilet, and cooking facilities.You have to make the determination that your Catalina 22 meets this criteria, and be able to support it if the IRS ever asks.Hope this helps.

 

[Brad]

Matt's right on the money

I'm a tax preparer. The old saying is "you can claim anything you want.....until the IRS calls you on it"Brad

 

[jeff #14640]

my guy said no

i tried this year to write off my c22, but my cpa didnt seem to think the irs would see it my way if they ever looked into it, since the h20 system is temporary as is the toilet and that there was no hot h20. if you do it and it flies,certainly let me know, every little bit helps since i only get to deduct the little one every other year. jeff.