I know about writing off interest on monthly payments, but is their anything I can do (tax wise) with slip fees, winter storage and winterization costs?
Question for tax guys
- Thread starter bigsick
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I believe the answer lies in whether or not your boat, or any part of it is used exclusively as a business. Having said that, it's always a bad idea to ask for tax advice on the internet.
Unless it's a boat in charter service...
you probably run a big risk in getting flagged for an IRS audit. Could get ugly!
you probably run a big risk in getting flagged for an IRS audit. Could get ugly!
According to my tax professional, you must claim your boat as a second home or business to write off any interest on monthly payments. If you are claiming it as a second home, then any state taxes paid (ie registration fees) can also be deducted but slip fees and such would not be unless the boat was a business. You treading in some very sharky water here. A tax pro is needed to give you that kind of help and I don't mean H&R Block, Jackson Hewitt and those sorta guys.
Without a business use, the only deduction is 2nd home interest, taxes
With a businees use, virtually all expenses on a prorata basis
With a businees use, virtually all expenses on a prorata basis
As a tax guy I must ask....Why do you think the gubment wants to subsidize your recreation?
EOM
The regs were written to give second home owners a tax break on their vacation homes. Some boats and RVs qualify for this tax break. It's just another perk for those that have enough money to afford these sort of things.
Personally I wish there were no 'tax codes'. Income tax and the IRS should be completely eliminated in favor of a flat sales tax or VAT. That way the money you EARN you KEEP. You ONLY pay a tax when you SPEND it. I know this will never fly because the rich will never allow it to happen. They spend the most and they would bare the biggest part of the tax debt, way more than they do under the present rules.
...sorry for the rant!
Personally I wish there were no 'tax codes'. Income tax and the IRS should be completely eliminated in favor of a flat sales tax or VAT. That way the money you EARN you KEEP. You ONLY pay a tax when you SPEND it. I know this will never fly because the rich will never allow it to happen. They spend the most and they would bare the biggest part of the tax debt, way more than they do under the present rules.
...sorry for the rant!
You can't blame everything on the rich, Alan 
I do think that a flat income tax, with no deductions, is a great idea though...EVERYBODY pays 10%...or 15%...or 20%... The way we're headed, the tax code CAN be revised to include just 3 lines: 1. How much did you make? 2. Multiply by 100%. 3. Make check payable to IRS.
Not quite...they were actually written to give members of Congress a tax break on THEIR second homes in and around D.C. [/quote]
Again. not quite. It's not the rich who are against a national sales tax, it's the advocates for the working poor who claim that, because the poor have to spend a larger percentage of their income on necessities--up to 100%, with no "discretionary" income left for luxuries, the working poor would pay MUCH a larger percentage of their income in taxes than the rich.
I do think that a flat income tax, with no deductions, is a great idea though...EVERYBODY pays 10%...or 15%...or 20%... The way we're headed, the tax code CAN be revised to include just 3 lines: 1. How much did you make? 2. Multiply by 100%. 3. Make check payable to IRS.
doesn't the government pay for their housing when their in DC??
i mean we pay for their housing when their in DC!!!!
Peggy, you must use the long form. The short form contains lines 1 and 3 only.
eh, same difference
Members of Congress don't get a housing allowance, but the do get reimbursed for travel to and from their districts. At 174k/yr. they can afford their own apartment in DC.
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