New Tax bills, Game changer?

Jan 21, 2009
232
Catalina 30 Lake Perry, KS
In reading the various tax proposals, it appears there is an effort to eliminate interest deductions for 2nd residences. If this passes, then no doubt it will affect boats , RVs and of course condos. This deduction is hyped to encourage potential buyers to break out their wallets. There is also mention of removing the deduction on home equity loans.This would apply to not only new boats as well as used boats. In addition, personal property taxes are also mentioned which would add to the new equation where boats are subject to the a personal tax. Seems as this will not only affect new boat sails but hit the market for used boats. On a brighter side it may affect new condo construction.
 
Nov 6, 2006
9,242
Hunter 34 Mandeville Louisiana
Not only the sale of sails but the sale of the boats too.. OK just being a smart ash..
Reminds me of the outrageous "luxury tax" that was levied similarly many years ago.. resulted in the literal crash of many boating manufacturers.. I can't see the repeal of the interest deduction for "second homes" as ever passing.. too many condos at stake by developers.. and their lobby..
 
Jan 11, 2014
7,958
Sabre 362 113 Fair Haven, NY
To quote Yogi Bera, "It ain't over 'till its over!"

Who knows what is going to happen. There are too factors in play to make any kind of prediction. Top of the list is the polls. Then we have the health of a couple of key Senators (McCain and Paul). Who knows what is going to happen in Alabama.

And the Senate stuck a poison pill into the mix with the elimination of the individual mandate.

Let the Lobbying begin!
 
Jan 5, 2017
2,172
Beneteau First 38 Lyall Harbour Saturna Island
Up here NO interest is tax deductible. The R.V., Condo and boat markets are alive and well.
 
Sep 25, 2008
6,348
Alden 50 Sarasota, Florida
I suspect we can all agree we now have a 'business friendly' climate so I wouldn't worry too much yet about the American made boat builders or their market.
 
Oct 26, 2008
5,044
Catalina 320 Barnegat, NJ
Interest rates are low enough that there isn't much to be gained by the deduction, especially if it is offset by a lower tax rate. I wonder about the deduction of home equity line of credit. That's an alternative way to raise cash for a sailboat and the interest would then be deductible, no? If you don't have equity in your home, I would question the sanity of taking out another loan for a boat. I think the concern about the tax bill as it relates to sailboat sales would be much ado about nothing.
 

Phil Herring

Dethroned Admin
Mar 25, 1997
4,859
Hunter 450 Bainbridge Island
Folks, this needs to stay focused on boats. If you find yourself talking about the senate, media, or political parties, you are about to have this thread deleted.
 
Apr 4, 2016
201
Newport 28 Richardson Marina
Sounds like it would make the market for worthless old boats more attractive, a 10% luxury tax on zero is zero
 
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Oct 22, 2014
16,405
CAL 35 Cruiser moored EVERETT WA
Now you guys have gone and done it... Woke up our dethroned King. @Phil Herring There used to be a safe space where sharing was permitted.... Think it was called a “War Room”... I only heard about it. Can only guess it may have used up too much band width... Too bad.

At least when this gets worked out the boat manufactures may have a better tax position and the cost of boats might be lowered enough to compensate for the loan tax. Economics of boats will find its equilibrium. It worked out in Canada.
 
Oct 19, 2017
7,017
O'Day 19 Littleton, NH
Up here NO interest is tax deductible. The R.V., Condo and boat markets are alive and well.
The economy is only a process that is relative in the minds of those who participate. If there never was a tax deduction, people wouldn't even consider out when making the decision to buy. It's the transitional periods between one process and another (relativity) that makes it painful.
If tax deductions on interest for second home loans goes away but tax deductions for investment property stays, we will see a lot of property being transferred to corporate ownership. The problem with that idea and boats is that, unlike real estate, boats only depreciate in value. Makes it hard to call a boat any investment property. Put a company name on the side and now it is an advertisement expense, part of the company operations cost.
Maybe not so good for young people getting into sailing but, that won't have grown up under the old economic process, either.
- Will (Dragonfly)
 
Jun 8, 2004
8,974
-na -NA Anywhere USA
It would be interesting if the entire congress was put into one large building with no roof with only permission to go to the head under armed escort with food being delivered to that room and all were told that they too would be subject as well as the fiddlesticks they come up with?
 

Gene S

.
Nov 29, 2015
181
Delphia 37 Tacoma
I have to ask my tax person about this. I already deduct sales tax from house and boat repairs. My boat is considered a vacation home. I have to check if I deducted interest last year.
 
May 24, 2004
6,835
CC 30 South Florida
Up here NO interest is tax deductible. The R.V., Condo and boat markets are alive and well.
That may be true but those simple tax deductions provide high paying jobs to many accountants, attorneys, bankers, IRS agents and many related service downstream providers. We are proud of the economic impact of our complex tax code.
 
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Feb 26, 2004
22,006
Catalina 34 224 Maple Bay, BC, Canada
That may be true but those simple tax deductions provide high paying jobs to many accountants, attorneys, bankers, IRS agents and many related service downstream providers. We are proud of the economic impact of our complex tax code.
And can you imagine the stampede to those same fine fellows when the changes are implemented. Hopefully if, not when. It's nonsense with some very not-so-hidden agendas.
 
Oct 19, 2017
7,017
O'Day 19 Littleton, NH
It's nonsense with some very not-so-hidden agendas.
but, if you jump in and join them right away, you can get in at the top of the pyramid. Just, try and get out before it collapses. Which it will do as soon as the first group decides to get out.
- Will (Dragonfly)