[Mikeymoto]

I've seen some messages making vague references that you might be able to write off a boat on your taxes. Is it possible to do it? How? The only 2 options that come to mind are: 1-if you have your guides license, 2-if it qualifies as a second home, not sure about what the boat must have as far as equiptment ie: stove, refrige,toilet (does a porta-potty qualify?)
Does anyone have any experience with these or any other situations. I would appreciate some guidence, don't need to know all the tax codes, just some general advise.

 

[Born to Fish]

You guessed it with the "second home/second mortgage" deal. If you're making payments on a "self-contained" RV or boat, you can claim the interest paid in your deductables. At least this is what I've been told by many - owners as well as sales folks.

The caveate, I've been told, is - check with your accountant, tax return preparer, etc.

[ 04-20-2003, 06:09 PM: Message edited by: Born to Fish ]

 

[jcarufo]

We write ours off with our travel agent business, because we do fishing groups. 179 deduction: whole thing in one year. Expenses after that.
jean

 

[trap50]

The only other way I know is to use a home equity line of credit.

 

[fish assassin]

If you license it as a commercial (ugh) boat you can write off your
boat, fuel, slip, gear, insurance and milage to and from your boat
to your home ...

-assAssin-

 

[Silver Hilton]

You need to be careful about this. If you do the section 179 deduction, you need to be able to eventually show income, or you may get bitten in the audit. I'm not sure what the current rules are, but it used to be in a 'hobby' business, which is what part time guiding would fall into, you need to show a profit 3 years out of five in order to continue the deductions. My memory on this is stale, so check with your accountant.

You can always deduct expenses up to the extent of any income you get. The issue is whether you can deduct something big, like a boat or a truck, and have it throw off a loss against your other income.

 

[Silver Hilton]

One more thought - a good, cheap source of advice on these types of issues is Turbo Tax software. Even if you don't use the software, it has tutorials in it that can help you figure out what you can do. At the end, it will run a check, and tell you what audit risks you have in your return.

 

[hookem]

Lets say you fish for the pike minnow, and at the end of a year have been paid $1000.00, you will pay tax's on that.
Its may understanding that all the expences can be deducted, gas, tackle, if you rent a boat to catch the fish. Also if you have a boat a portion of it can be used also.
just a foot note, I have no expertise in this field!!

 

[fishonksm]

Mikey, yes you can write off the interest on a motor home, boat, camper, trailer or other item as a second home ONLY if has installed cooking, sleeping, and toilet facilities. If you use it for business thats another ball game. Business operators have another set of rules. I’ve written my new camper off for 2 years now. I’m loosing the tax deduction only 4 more years left on it. :cheers:

 

[Silver Hilton]

Originally posted by hookem:
Lets say you fish for the pike minnow, and at the end of a year have been paid $1000.00, you will pay tax's on that.
Its may understanding that all the expences can be deducted, gas, tackle, if you rent a boat to catch the fish. Also if you have a boat a portion of it can be used also.
just a foot note, I have no expertise in this field!!

<font size="2" face="verdana,arial,helvetica">You could depreciate the boat, or take a section 179 write off if you purchased a new boat. Subject to the the hobby business rules discussed above, you could carry a loss over to other other, if you show a profit on the squawfishing 3 years out of 5. Again, according only to my fuzzy memory - tax classes were several years ago.

 

[Mikeymoto]

Thanks guys. I already have turbo tax and will check into the hobby type of business. As always I'll check with a CPA

 

[Pickles]

Actually I was told at the boat show, that you were not required to have a stove. All that you needed was a fresh water supply.

 

[Mikeymoto]

Oops I hit a wrong button and completed the post prematurely. Anyway a CPA or tax lawyer may be the best way to go if I get serious about this. Thanks again,
Mikeymoto

 

[Miss B Haven]

You can only right off the interest on a boat loan for the second home thing. No depreciation, no fuel expense, tackle etc etc. I thin kI heard that porta potties do not count when determining "self contained" and "second home" status.

Commercial fishing is considered like farming, it's "agricutural". You do not need to show a profit ever, only a plan and an intent and you can right off expenses against other income. You better have a commercial license though! A guide is not a Fisherman however, it is a service business. You can only right off expenses up to the amount of income you show.

Disclaimer- take this advise as free on the WEB and act accordingly!

 

[Mr. Fisherman]

My accountant told me that as long as you have the three "B"s you could write off the interest on your boat or RV as a second home. Those "B"s are, 1) Bed 2) Bathroom and 3) Breakfast.
As long as she is ready to take on the audit I'm taking the deduction as my boat has all three.
Last week I enjoyed cooking a breakfast of fried potatos, scrambled eggs, cheese and smoked Salmon and a cup of hot coffee while I watched my pole work to get a Springer and a few Eagles flew overhead. The deduction was the last thing on my mind at the time...

I have heard that you should also save all the receipts from your boat fuel purchases as you can write off part of the taxes, the part that goes towards road repair and stuff like that as the fuel was used on the river or Ocean opposed to the highways and roads. Check with your accountant but save the receipts until you do :wink: . :cheers:

 

[rojo]

Checked with the other half(she's a tax person). On a pleasure boat you must be self contained, galley, head, sleeping area. Then you can deduct the loan interest but nothing else. Or like many people you can have a bucket and a gallon jug of water and hope you don't get caught..Roger..PS as always take this info with a grain of salt.

 

[greenbuttskunk]

If you can write off stock losses, why not springer losses. I'd be getting some money back!

 

[Re:Play]

Our accountant keeps reminding us that we can write off expenses in conjunction with our business. Yes it can include my truck, computer, cell phone, digital camera, etc, cause we use them in our business of landscaping. But, even with my truck, I can not write off all miles driven as it needs to be used for part of the business.

The reason we pay our accountant is to help us do what we can legally do, and he stands behind it. Worth every penny we pay him. Suggest making an appointment with a tax accountant, and exploring how to pursue these options.

Years ago I got a letter from the IRS that said I owed them $8,000 more! After I came to, I called our accountant, never did meet with the IRS, and never owed any more $$. :cheers: