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.
Professional Athletes Could Be Getting a Big Tax Victory in Cleveland
Professional Athletes Could Be Getting a Big Tax Victory in Cleveland Millions of sports fans all over the country love their favorite teams and athletes. A large majority of professional athletes from all walks of the sporting world make a lot of money and are some of the highest paid individuals in the country. While…
How to Choose an Investment Advisor
How to Choose an Investment Advisor Finding a reliable source for investment advice has always been a challenge. It’s especially difficult in today’s investment environment. There’s no shortage of places to turn for advice. The shelves at the bookstores are filled with “experts” offering their perspectives on how and where to invest. The financial pages…
Here’s a 15-item checklist of low-hanging tax tips for financial advisors
Here’s a 15-item checklist of low-hanging tax tips for financial advisors It’s tempting to put April 15th behind you, but here’s how you can plan for next year: With April 15th behind us, many people put tax issues onto the back burner until they’re staring at the next deadline. Alan Olsen, managing partner at Greenstein,…
How To Stay In Control Of Your Company
How To Stay In Control Of Your Company Have you ever watched the popular ABC program Shark Tank? This “reality” show allows entrepreneurs and business owners to pitch their business ideas or products to five extremely wealthy investors who are successful entrepreneurs in their own right. The panel of “shark” investors even includes Dallas Mavericks’…