For Federal Tax Purposes, a boat (or a recreational vehicle) can be either your main or secondary residence. The same tax deductions apply to a dwelling homeowner of a typical residential property.
- If you have a main home and a second home, you will likely not be able to qualify your vessel as a third deduction.
- Only one residence can be deemed as a main home at any given time.
- Requires cooking, sleeping, and toilet facilities to be considered as a Primary or Secondary residence for tax purposes.
- Secured loans used to purchase the vessel, you can deduct interest paid on the loan.
- You may be able to claim a home office deduction if you work from your vessel.
Should you occasionally use your recreational vessel to entertain business Clients you may be eligible for deductions.
- Deductions are limited to 50% of the cost.
- Deductions qualify for drinks, food, fuel, and/or transient mooring.
- Deduction expenses must note attendee occupations, dates, locations, and names.
There are other advantages and requirements for:
- Business Entertainment (Regularly)
- Charter Ownership
- Donation
Any income earned with your vessel must be reported to the IRS (charter, fishing, sightseeing, tours, etc)!Consultant with your Accountant, Attorney, Certified Public Accountant (CPA), and/or Tax Professional Agency. For more information, you may reference the IRS Deductible Taxes.
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