SOUTH COUNTY -- Boat Owners Association of the United States (BoatU.S.) wants boaters to know that as long as their vessel meets the criteria for a second home, the Internal Revenue Service (IRS) has a deduction for them.
"For tax purposes, many boats qualify as second homes just like land-based vacation condos and mobile homes," said Elaine Dickinson of BoatU.S. Government Affairs. "If you have a secured loan on that vessel and it meets the criteria of a second home, the IRS allows the interest paid on the loan to be deducted."
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 www.irs.gov. IRS Publication 936 also covers rules for interest deductions.
BoatU.S. is the nation's leading advocate for recreational boaters and provides its 580,000 members with a wide array of consumer services including a group-rate marine insurance program that provides over $8 billion in hull coverage; the largest fleet of more than 500 towing assistance vessels; discounts on fuel, slips, and repairs at over 775 cooperating marinas; boat financing; and a subscription to BoatU.S. Magazine, the most widely read boating publication in the U.S. for membership information visit www.BoatUS.com or call 800-395-2628.
Source: http://www.zwire.com/site/news.cfm?BRD=1714&dept_id=73835&newsid=14102677&PAG=461&rfi=9
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