[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions_reimg.php on line 122: preg_match_all(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions_reimg.php on line 124: array_unique() expects parameter 1 to be array, null given
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions_reimg.php on line 126: Invalid argument supplied for foreach()
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions_reimg.php on line 122: preg_match_all(): The /e modifier is no longer supported, use preg_replace_callback instead
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions_reimg.php on line 124: array_unique() expects parameter 1 to be array, null given
[phpBB Debug] PHP Warning: in file [ROOT]/includes/functions_reimg.php on line 126: Invalid argument supplied for foreach()
BigLake411.com • View topic - Boat owners tax deduction

  • Advertisement
Litem'Up Lures

Boat owners tax deduction

General boating discussion (boats, motors, marine electronics & accessories)

Boat owners tax deduction

Postby jsmoke222000 » Mon Jan 31, 2011 9:44 am

Recreational boat owners who paid state sales taxes on a boat purchase, or those who secured a bank loan to finance a boat, may have some tax deductions available when filing their 2008 federal income tax return.

The Sales Tax Deduction

For boat owners who paid substantial state sales taxes on a new or used boat purchase last year, the Tax Extenders Act of 2008 signed by President Bush on October 3 continues to offer a federal tax benefit with a deduction for state sales taxes. Boaters must choose either the state sales tax deduction or state income tax deduction on their federal tax return — you cannot take both.

In addition, to take the state sales tax deduction, the sales tax on a boat purchase must be applied at the same tax rate as the state’s general sales tax. In order to claim the sales tax deduction, tax returns must be itemized. State sales taxes are entered on IRS form Schedule A, line 5b.

The Boat Loan Deduction

For those owners with a secured boat loan, mortgage interest paid on the loan may be deductible from your federal income taxes. Taxpayers may use the "second home" mortgage interest deduction for one primary home and one second home and must itemize deductions on their returns. A boat is considered a second home for federal tax purposes if it has a galley, a head, and sleeping berth.

Some boaters may be unaware of this potential tax benefit because not all lending institutions send borrowers an Internal Revenue Service form 1098 which reports the interest paid. Not receiving the form does not preclude taking the deduction. If a 1098 is not available, boaters should contact their lender for the amount of interest paid and should enter it on line 11 on Schedule A along with the lender’s tax ID number. If a form 1098 is sent, boaters should simply enter the amount on line 10 of Schedule A.
User avatar
jsmoke222000
Site Admin
 
Posts: 1126
Joined: Mon Mar 16, 2009 8:27 am
Location: Lake Chuck

2012 Majek Extreme 2200

Return to The Boat Shed

Who is online

Users browsing this forum: No registered users and 5 guests

  • Advertisement
Majek Boats
cron