M/V Soul Mates
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Does your Vessel Qualify for a Federal Tax Deduction?

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.

Hi, I’m Janet

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