eddie
Member
1st year with boat (2006 240 sundancer) and wondering what am i able to write off.the taxes,the principal intrest or both.i live in nj.
thanks,eddie
thanks,eddie
write off
- Thread starter eddie
- Start date
- Oct 3, 2006
- 4,404
- Boat Info
- 280 Sundancer, Westerbeke MPV generator
- Engines
- twin 5.0's w/BIII drives
The interest on the loan if the loan is using the boat as collateral.
Done.
I assume you are not using the boat as a business.
PS: I dont know NJ. In Wisconsin the interest on the loan is NOT deductable on the state taxes. So the only deduction is on the Fed taxes.
Oh, do you have a stove? Even if you dont use it, keep it. :thumbsup:
Ditto with the head, but if you have a 260DA I think you must have a head. The stove some people remove.
Done.
I assume you are not using the boat as a business.
PS: I dont know NJ. In Wisconsin the interest on the loan is NOT deductable on the state taxes. So the only deduction is on the Fed taxes.
Oh, do you have a stove? Even if you dont use it, keep it. :thumbsup:
Ditto with the head, but if you have a 260DA I think you must have a head. The stove some people remove.
Bridog
Well-Known Member
Check with your tax advisor but your boat should meet the requirements for a tax write off for "THE INTEREST" paid in 2006. This is if you are writting this off as a second home and are not already doing that. Ask your lender for a statement of interest paid in 06.
- Oct 3, 2006
- 4,404
- Boat Info
- 280 Sundancer, Westerbeke MPV generator
- Engines
- twin 5.0's w/BIII drives
Per BoatUS
For boats used as a "second home" and those meeting the criteria set by the Internal Revenue Service (IRS), you may deduct interest paid on a secured boat loan. To be a qualified residence, the IRS stipulates that the boat have sleeping, cooking and toilet facilities, i.e. a berth, galley and head. (There is no personal use time requirement unless the boat has been rented during the tax year.)
The other criterion is that the loan on the boat be secured, that is, the boat is held as collateral by the lending institution and could be foreclosed upon for non-payment, i.e. a "mortgage." A line of credit does not qualify as a secured loan. Also, the deduction applies only to pleasure (recreational) boats. If your boat is already written off as a business expense, the "second home" tax deduction does not apply. Boat owners who use their recreational boat for charter, must either use it personally for at least 14 days a year or 10 percent of the total days it is chartered-whichever is greater.
To take the deduction, boat owners need to itemize their deductions and enter the interest paid on the loan on Schedule A, Line 10 if you received a Form 1098 reporting interest paid. If not, enter it on Line 11 and fill in the name of the person or institution to whom payments are made, their address and tax ID number or Social Security number.
Receiving or not receiving a Form 1098 is not a "test" of deductibility. Some lending institutions will not give them routinely for boats because they're not in a position to inspect each one to see if it fits the criteria of a second home. But the deduction may still be valid without the Form 1098.
Boat owners who used a home equity loan to buy a boat may also deduct interest paid on that loan with no restrictions on boat type or amenities. That interest is entered on the line for home mortgage interest.
Those tax payers in the higher income brackets who may be "alternative minimum taxpayers" are treated differently and the above deductions may not apply. BoatUS always recommends that boat owners consult their own personal financial or tax adviser on specific tax questions.
Source
http://www.boatus.com/gov/f3.htm
For boats used as a "second home" and those meeting the criteria set by the Internal Revenue Service (IRS), you may deduct interest paid on a secured boat loan. To be a qualified residence, the IRS stipulates that the boat have sleeping, cooking and toilet facilities, i.e. a berth, galley and head. (There is no personal use time requirement unless the boat has been rented during the tax year.)
The other criterion is that the loan on the boat be secured, that is, the boat is held as collateral by the lending institution and could be foreclosed upon for non-payment, i.e. a "mortgage." A line of credit does not qualify as a secured loan. Also, the deduction applies only to pleasure (recreational) boats. If your boat is already written off as a business expense, the "second home" tax deduction does not apply. Boat owners who use their recreational boat for charter, must either use it personally for at least 14 days a year or 10 percent of the total days it is chartered-whichever is greater.
To take the deduction, boat owners need to itemize their deductions and enter the interest paid on the loan on Schedule A, Line 10 if you received a Form 1098 reporting interest paid. If not, enter it on Line 11 and fill in the name of the person or institution to whom payments are made, their address and tax ID number or Social Security number.
Receiving or not receiving a Form 1098 is not a "test" of deductibility. Some lending institutions will not give them routinely for boats because they're not in a position to inspect each one to see if it fits the criteria of a second home. But the deduction may still be valid without the Form 1098.
Boat owners who used a home equity loan to buy a boat may also deduct interest paid on that loan with no restrictions on boat type or amenities. That interest is entered on the line for home mortgage interest.
Those tax payers in the higher income brackets who may be "alternative minimum taxpayers" are treated differently and the above deductions may not apply. BoatUS always recommends that boat owners consult their own personal financial or tax adviser on specific tax questions.
Source
http://www.boatus.com/gov/f3.htm
Bridog
Well-Known Member
Thanks for the info Doug and Lisa. :thumbsup:
mrtopknight
New Member
I'm going to add a head and a stove to mine :grin: Kidding :lol:
eddie
Member
thanks for all the great info.
one last question.i don't have a stove,but i do have a microwave.
will this be ok? last time i checked,you can use these to cook stuff.
thanks again,eddie
one last question.i don't have a stove,but i do have a microwave.
will this be ok? last time i checked,you can use these to cook stuff.
thanks again,eddie
eddie
Member
great.thanks again,guys
island trek1
New Member
My loan is through a major bank in Ohio. They do not send 1098 forms for boat loans. 2 years ago I just entered the interest paid on the appropriate line and my return was adjusted and I was billed what they thought I owed. 1 phone call, 3 transfers, and 90 minutes later i was able to straighten things out and received the proper refund. Last year I just included the sheet of paper provided by the bank showing interest paid and added an explanation. No problems. I will repeat this procedure this year.
eddie
Member
ok,island trek. i will do the same.my bank sent a bill with the amount of intrest paid.great info,thanks
