RJ
01-21-2004, 04:05 PM
TAX TIME TIP: HOW TO DEDUCT A BOAT LOAN
The Boat Owners Association of The United States wants boaters to know that as long as your vessel meets the criteria for a second home, the Internal Revenue Service (IRS) should have a deduction for you.
"For tax purposes, many boats qualify as second homes just like land-based vacation condos and mobile homes," said Elaine ****inson of BoatU.S. Government Affairs. "If you have a secured loan on that vessel, the IRS allows a tax deduction on the interest paid on the loan."
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 http://www.irs.gov . IRS Publication 936 also covers rules for interest deductions.
The Boat Owners Association of The United States wants boaters to know that as long as your vessel meets the criteria for a second home, the Internal Revenue Service (IRS) should have a deduction for you.
"For tax purposes, many boats qualify as second homes just like land-based vacation condos and mobile homes," said Elaine ****inson of BoatU.S. Government Affairs. "If you have a secured loan on that vessel, the IRS allows a tax deduction on the interest paid on the loan."
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 http://www.irs.gov . IRS Publication 936 also covers rules for interest deductions.