OK-Anyone with info on what equipment the IRS requires to deduct boat interest? (2nd home mortgage) I heard you need a roof, potty and running water. With all the IQ on this forum-the facts are out there.
I think you need something to cook on. That is why most boats give you those little propane stoves. And a place to sleep(cabin)The boat does not need running water,or a potty . I could be wrong though.It might need the potty. I remember an article on it a while back ,if I find out I will copy it and post it. But I think it's only those 2 things.
Best thing to do if you can is take out a home equity loan and buy a boat with the money. Then you can automatically deduct the intrest,and don't have to worry about the 2nd home thing.
My ex got enough to go out and buy a smaller home and then enouh to pay the mortgage for 5 years..and then some....
I figured 5 years would give her enough time to go back to school and get an education in a career where she could actually support herself...god knows you can't support yourself with a Master Degree in Phys ED and also be a Certified paralegal....
no....those careers just weren't fulfilling enough to her....
Basically you need a place to sleep, cooking and toilet facilities. But as a CPA said on another board- When you are asked during the audit about the boat you will say that it has sleeping, cooking, and toilet facilities-RIGHT?????? He had never heard of an auditor actually asking to see the boat. If you have a Sea Doo, you might not want to try it
When I asked, the bank said it wouldn't be deductible on the Sunsation Aggressor and gave me a home equity loan cheaper anyway. The only problem is you have to use your house as colateral, but hell, the boat is the most important thing to purchase anyway!
The criteria for deducting boat loan interest is (or at least was):
1. Separate toilet/head area (porta-potty underneath a cushion doesn't count)
2. Permanently installed hot and cold water
3. Permanently installed cooking appliance(s)
4. Separate sleeping area (v-berth qualifies).
5. must spend a minimum of (14) nights on the boat per year
As mentioned above, when was the last time an auditor asked to see your boat?