Boat Mortgage

Today TaxMama hears from Mark in the TaxQuips Forum, who’s doing well.“ If I purchase a cruiser with a kitchen, 2 bathrooms, and 2 bedrooms, does it qualify as a second house? May I deduct interest paid on the boat as mortgage interest? Several boat dealers say “yes” (of course, but they do not have to face the IRS later).”

Ahoy Mark,

That sounds like you could live in it. Bed, bath, kitchen (galley). Yup. Not only could you treat the mortgage interest as a second home, but if you had bought it early last year – and make it your principal residence, it would have qualified for the homebuyers credit!

For once, salesmen are telling the truth about a tax attribute.

And remember, you can find answers to all kinds of questions about boat expenses and other tax issues, free. Where? Where else? At www.TaxMama.com.

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Please post all Comments and Replies in the new TaxQuips Forum . 

And remember, you can find answers to all kinds of questions about boat expenses and other tax issues, free. Where? Where else? At www.TaxMama.com.

[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]

Please post all Comments and Replies in the new TaxQuips Forum .

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