I am familiar with the usual requirements for tax deductions on boats. However, I have never heard anyone address the issue of deeded boat slips and tax implications. Can the interest on a deeded boat slip loan be deducted; provided you have your own vessel docked there? Can it be deducted under any other circumstances? Also can anyone else provide any insight into deeded boat slips? It would appear that this is the way to go, provided that you know where you want to leave the vessel on a long term basis. Thanks, Chip
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Yes
I don't know about "stand-alone" loans, but anything purchased or paid for with proceeds from a home equity loan can be deducted. ~ Happy sails to you ~
I don't know about "stand-alone" loans, but anything purchased or paid for with proceeds from a home equity loan can be deducted. ~ Happy sails to you ~
I don't know...
This seems a bit complex for a bulletin board. I would contact a CPA or the IRS on this one, but I wouldn't get my hopes up too high. The slip isn't a "home"- the boat itself would be. Personally, I don't see how the interest would be any more deductible than an auto loan etc. But the CPA etc would know.
This seems a bit complex for a bulletin board. I would contact a CPA or the IRS on this one, but I wouldn't get my hopes up too high. The slip isn't a "home"- the boat itself would be. Personally, I don't see how the interest would be any more deductible than an auto loan etc. But the CPA etc would know.
Lack of replies
Thanks for the replys, I suspected that I would ultimately seek a CPA on this one. I doubt that the deeded slip will qualify as a deduction; wishful thinking on my part. I see there have been over 250 views of this, I'm surprised none of the viewers, or their fellow sailors, have run across this issue before and run in past a CPA. Thanks for your replies. Chip
Thanks for the replys, I suspected that I would ultimately seek a CPA on this one. I doubt that the deeded slip will qualify as a deduction; wishful thinking on my part. I see there have been over 250 views of this, I'm surprised none of the viewers, or their fellow sailors, have run across this issue before and run in past a CPA. Thanks for your replies. Chip
Sorry Chip for late reply
The deeded slip will incure property taxes. Property taxes are deductable. Also as I guess most boaters know you will get a better loan rate for your purchase money for your boat by borrowing against your house and interest there is a deduction. The same will apply to the purchase money loan for the slip; borrow against the house, better interest rate and deductable. Scott "Not a CPA" Wilson
The deeded slip will incure property taxes. Property taxes are deductable. Also as I guess most boaters know you will get a better loan rate for your purchase money for your boat by borrowing against your house and interest there is a deduction. The same will apply to the purchase money loan for the slip; borrow against the house, better interest rate and deductable. Scott "Not a CPA" Wilson
Thanks Scott
Scott, Thanks for the reply. Good points, I was entertaining the idea of paying for the slip upfront and financing a portion of the boat. You are correct about the home equity line for either purchase. That may be the route to go. I am waying the benefits of leasing a slip annually as opposed to owning one. I wish someone would opine on that. So far I have had very little response. Maybe someone will weigh in on one of these issues over the weekend. Chip
Scott, Thanks for the reply. Good points, I was entertaining the idea of paying for the slip upfront and financing a portion of the boat. You are correct about the home equity line for either purchase. That may be the route to go. I am waying the benefits of leasing a slip annually as opposed to owning one. I wish someone would opine on that. So far I have had very little response. Maybe someone will weigh in on one of these issues over the weekend. Chip
Isn't that what I said two days ago?
Sheese. :^( I have a friend in NYC who now owns his slip. He was able to get it for a very reasonable price. He figures, he made up for the purchase within three years, and he plans to keep using it for 5+ years. His only expenses are utilities, slip maintenance, and a pro-rated share of an occasional dredging of the marina. Leasing (renting) a slip is what most boat owners do. It allows the renter the luxury of being able to leave at the end of the lease and not worry about slip repairs, or dredging, or having to find a buyer. However, at lease renewal the rent can be increased to whatever the market can bear. In the last two years, my slip rates increased 10% and 5% respectively. ~ Happy sails to you ~ _/) ~
Sheese. :^( I have a friend in NYC who now owns his slip. He was able to get it for a very reasonable price. He figures, he made up for the purchase within three years, and he plans to keep using it for 5+ years. His only expenses are utilities, slip maintenance, and a pro-rated share of an occasional dredging of the marina. Leasing (renting) a slip is what most boat owners do. It allows the renter the luxury of being able to leave at the end of the lease and not worry about slip repairs, or dredging, or having to find a buyer. However, at lease renewal the rent can be increased to whatever the market can bear. In the last two years, my slip rates increased 10% and 5% respectively. ~ Happy sails to you ~ _/) ~
lease/buy slip decision
Chip, do the math and then be honest with your self about how long you will "own" the slip and what resale will be. With out the figures and with out your info (how long will you use it-honestly)it is hard to give a opion on this.I sure if you gave more info lots would answer but I also sure you can figure it out ! Good Luck !
Chip, do the math and then be honest with your self about how long you will "own" the slip and what resale will be. With out the figures and with out your info (how long will you use it-honestly)it is hard to give a opion on this.I sure if you gave more info lots would answer but I also sure you can figure it out ! Good Luck !
Discussion on this Last Week
Chip - did you see the discussion about condo slip ownership about a week ago? There were a number of postings that should be an interesting read. Length of ownership is very important because it isn't necessarily the most liquid of investments. But - the value should increase with time. In the early 1980s there were a number of marinas constructed in our area and values actually dropped for awhile and started to increase again and it took about 15 years for the owners to break even. Since then there have been very few new marinas constructed and slip values have steadily increased ever since. We've owned our condo slip now for over 7 years and it's increased in value about 50% during that time and, additionally, the cost of ownership has been much less than renting at any of the nearby public marinas even when interest is factored in. With the current low interest rates I think if you can just break even the first year it should be a good investment.
Chip - did you see the discussion about condo slip ownership about a week ago? There were a number of postings that should be an interesting read. Length of ownership is very important because it isn't necessarily the most liquid of investments. But - the value should increase with time. In the early 1980s there were a number of marinas constructed in our area and values actually dropped for awhile and started to increase again and it took about 15 years for the owners to break even. Since then there have been very few new marinas constructed and slip values have steadily increased ever since. We've owned our condo slip now for over 7 years and it's increased in value about 50% during that time and, additionally, the cost of ownership has been much less than renting at any of the nearby public marinas even when interest is factored in. With the current low interest rates I think if you can just break even the first year it should be a good investment.
John, Pete, Ed
I appreciate all of your responses. John, I did not review the condo discussion. I will definitely review that, it sounds like it will be very informative. I found your comments about the condo slips in your area to be very informative. This type of insight, from those who have been there, are very helpful. I am currently looking in the Little River South Carolina are (near Myrtle Beach). This has been a popular tourist area for years. Hopefully, values will steadily increase in this area. Thanks again for you personal insight into this issue. Chip
I appreciate all of your responses. John, I did not review the condo discussion. I will definitely review that, it sounds like it will be very informative. I found your comments about the condo slips in your area to be very informative. This type of insight, from those who have been there, are very helpful. I am currently looking in the Little River South Carolina are (near Myrtle Beach). This has been a popular tourist area for years. Hopefully, values will steadily increase in this area. Thanks again for you personal insight into this issue. Chip
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