Don't forget to include the interest paid on your boat loan when you itemize
your tax deductions.

Here is the standard that must be met to qualify:

From www.boatus.com:


"For tax purposes, many boats qualify as second homes just like land-based
vacation condos and mobile homes," said Elaine Dickinson of BoatU.S.
Government Affairs. "If you have a secured loan on that vessel and it meets
the criteria of a second home, the IRS allows the interest paid on the loan
to be deducted."

The IRS defines a second home as having "basic living accommodations such as
sleeping space, toilet and cooking facilities." A secured loan is one where
a lending institution holds the boat as collateral for the loan.

Interest paid on the qualified loan should be reported on the federal income
tax return Form 1040, Schedule A, Itemized Deductions. Boat owners who
received a 1098 form from their lender should enter the amount of interest
paid on line 10. If they did not receive a 1098 form, they should enter the
amount on line 11 and provide the lender's name, address and tax
identification number. For more specific tax information, boat owners should
consult their own financial or tax advisors or visit the IRS Web site at
www.irs.gov. IRS Publication 936 also covers rules for interest deductions.

BoatU.S is the nation's leading advocate for recreational boaters and
provides its 580,000 members with a wide array of consumer services
including a group-rate marine insurance program that provides over $8
billion in hull coverage; the largest fleet of more than 500 towing
assistance vessels; discounts on fuel, slips, and repairs at over 775
Cooperating Marinas; boat financing; and a subscription to BoatU.S.
Magazine, the most widely read boating publication in the U.S. For
membership information visit http://www.BoatUS.com or call 800-395-2628.

"JimH" wrote in message
...
Don't forget to include the interest paid on your boat loan when you
itemize
your tax deductions.

Here is the standard that must be met to qualify:

snip

Unbelievable! We don't get a tax break for interest paid on our principal
dwelling mortgage...let alone cottages or boats.

Don White wrote:

"JimH" wrote in message
...

Don't forget to include the interest paid on your boat loan when you

itemize

your tax deductions.

Here is the standard that must be met to qualify:


snip

Unbelievable! We don't get a tax break for interest paid on our principal
dwelling mortgage...let alone cottages or boats.



Think on the positive side -- malt vinegar on French frys, bi-lingual
ism, socialized medicine, your side of the falls is much nicer, you get
to use coloUr film aBoUt (pronounced your way) any time you like. I'm
sure you can add to the list.

"Jim," wrote in message
...


Think on the positive side -- malt vinegar on French frys, bi-lingual
ism, socialized medicine, your side of the falls is much nicer, you get
to use coloUr film aBoUt (pronounced your way) any time you like. I'm
sure you can add to the list.


The biggest...no fear of my kids ever being drafted to fight in a foreign
adventure.

"Don White" wrote in message
...

"JimH" wrote in message
...
Don't forget to include the interest paid on your boat loan when you
itemize
your tax deductions.

Here is the standard that must be met to qualify:

snip

Unbelievable! We don't get a tax break for interest paid on our
principal
dwelling mortgage...let alone cottages or boats.

Isn't the USA a great place?

"Jim," wrote in message
...
Don White wrote:

"JimH" wrote in message
...

Don't forget to include the interest paid on your boat loan when you

itemize

your tax deductions.

Here is the standard that must be met to qualify:


snip

Unbelievable! We don't get a tax break for interest paid on our
principal
dwelling mortgage...let alone cottages or boats.



Think on the positive side -- malt vinegar on French frys, bi-lingual ism,
socialized medicine, your side of the falls is much nicer, you get to use
coloUr film aBoUt (pronounced your way) any time you like. I'm sure you
can add to the list.

There you go Jim. ;-)

Gene Kearns wrote:
On Fri, 18 Feb 2005 16:35:37 -0500, "JimH" wrote:

Don't forget to include the interest paid on your boat loan when you
itemize
your tax deductions.


Don't forget the (state) road tax you paid on fuel, too..... you can
get that back...
--



Grady-White Gulfstream, out of Southport, NC.

http://myworkshop.idleplay.net/
Homepage
http://www.southharbourvillageinn.com/directions.asp Where
Southport,NC is located.
http://www.thebayguide.com/rec.boats
Rec.boats at Lee Yeaton's Bayguide


************************************************** ***

Caution:

You can only claim this interest expense exemption on *one* "second
home". If you have a principal residence mortgage as well as (say)a
$300,000 mortgage on a lakefront summer cabin and a $100,000 loan on
your boat, take the deduct on the summer cabin and forget the boat.


Second Caution:

If you have a very large boat loan, make sure that the interest
deduction doesn't lower your tax so much that you wind up in the
"alternative minimum tax" category. Speaking from unfortunately
frequent experience, AMT is usually more expensive than simply
forgetting to claim a few deductions and falling back onto the standard
tax charts.

wrote:

Caution:

You can only claim this interest expense exemption on *one* "second
home". If you have a principal residence mortgage as well as (say)a
$300,000 mortgage on a lakefront summer cabin and a $100,000 loan on
your boat, take the deduct on the summer cabin and forget the boat.


I had heard that this was changed last year so that there was a cap on
amount vs. a number of dwellings. Since my boat doesn't qualify and I
only have two homes, it didnt' matter to me .. but can anyone who
actually know tax law say for certain that you can only claim TWO
'residences' on your interest paid itemized deduction?


--
G.D.Smith
Harpers Ferry, WV

FOR SALE: 2003 Swee****er 22' Pontoon Boat
http://icanhelp56.homestead.com/gs_pontoon01.html

FOR SALE: 1999 Fleetwood Mallard 37' Travel Trailer
http://icanhelp56.homestead.com/Mallard001.html

On 2/19/05, "Glenn S." wrote:
can anyone who
actually know tax law say for certain that you can only claim TWO
'residences' on your interest paid itemized deduction?

You can only clain two residences. Your primary residence and your
second home.

See IRS publication 936
-------------------------------------------------------------------------------------------
http://www.irs.gov/publications/p936/ar02.html#d0e525

"More than one second home. If you have more than one second home,
you can treat only one as the qualified second home during any year.
However, you can change the home you treat as a second home during the
year in the following situations.
*
If you get a new home during the year, you can choose to treat the
new home as your second home as of the day you buy it.
*
If your main home no longer qualifies as your main home, you can
choose to treat it as your second home as of the day you stop using it
as your main home.
*
If your second home is sold during the year or becomes your main
home, you can choose a new second home as of the day you sell the old
one or begin using it as your main home."
--------------------------------------------------------------------------------------------
Rick