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.
Applying Your Talents | Shirley Ross Davis
Interview Transcript of: Applying Your Talents | Shirley Ross Davis Shirley Ross Davis: “We all have talents, associate them and don’t be afraid. I was never schooled in cooking or interior decorating or art- but I was a good cook, What did I do? I looked at Escoffier and saw common denominators and I…
Future Proofing Your Career | Paul Sack
About Paul Sack Paul Sack holds an A.B. magna cum laude from Harvard University, an MBA from the Harvard Business School and a Ph.D. from the University of California at Berkeley. With the exception of seven years as a department store executive in the 1950’s and four years on the Peace Corps staff in…
Building Confidence in Your Career | Andrew Bergman
About Andrew Bergman Andrew is an accomplished writer with extensive experience in the field of media/entertainment. He launched his career as a freelance writer as well as translating books. He then had the opportunity to create and write many segments for Good Morning America and a variety of other ABC Network programs until the…
Networking: How to Stand Out | Paul Bagen
About Paul Bagen For more than 20 years, Paul has assisted businesses and individuals in the reaching of their professional and personal goals. He has extensive experience as a public speaker, instructor and coach. His passion is training, motivating and coaching others to achieve their goals and realize their dreams in life. “Through the…