Could a Yacht Be Considered Your Second Home?
They say that a home is where the heart is. However, when it comes to a second home, it can be where your heart is, or just about anywhere else, as far as the IRS is concerned. In fact, not only can a second home be just about anywhere, it can actually be just about any structure, including a yacht or even a sailboat.
That’s right, boats typically count as a second home in the IRS’s book for figuring tax breaks, as long as the boat has cooking, sleeping and toilet amenities. According to the IRS, when it comes to your federal income tax, home mortgage interest is any interest you pay on a loan that is secured by your home. If you itemize your deductions and you own a qualified home with a mortgage you can deduct the interest from that mortgage.
Likewise, for your federal income taxes, you can also deduct taxes on personal property based on the value of that personal property, including any taxes due on a boat. However, you must be using your yacht or other boat for personal use. You don’t even have to stay in the boat or second home anytime during the year in order to claim real estate, property and interest taxes as deductions.
So if you’re considering buying a yacht or you already have one, then make sure you are fully maximizing the tax breaks that could come with it. If you want to make sure you are taking advantage of every tax break possible, then contact GROCO today for help. Just call 1-877-CPA-2006.
How to be a “Tax-Conscious” Investor
How to be a “Tax-Conscious” Investor “Uncle Sam wants you!” goes the slogan on that old poster. He also wants you to pay taxes. On the income from your employment. On what you earn from many of your investments. On a portion of the gain from the sale of those investments. But there is a…
President Going After the Wealthy Again With Proposed Tax Hikes
President Going After the Wealthy Again With Proposed Tax Hikes By Alan Olsen, CPA, MBA (tax) Managing Partner Greenstein Rogoff Olsen & Co. LLP The divide between Republicans and Democrats on Capitol Hill appears to be spreading even wider after President Obama used his State of the Union Address to take dead aim at high…
Top 10 Critical Mistakes Homebuyers Make and How to Avoid Them
[vc_row][vc_column][vc_column_text]1. Using an out-of-town lender. Getting a mortgage in a timely and hassle-free manner is the “key that opens the door” to your new home. Lenders who don’t live in the area you are buying in will not have the contacts needed to process your loan in an efficient and timely manner. Are you aware that…
Depreciation and Section 179 Expense Updates
Depreciation and Section 179 Expense Updates 2007 Changes Increased section 179 limits. The maximum section 179 deduction you can elect for qualified section 179 property placed in service in 2007 has increased to $125,000 ($160,000 for qualified enterprise zone and qualified renewal community property). This limit is reduced by the amount by which the cost of…