Using Boat As Tax write off

[Raider Ronnie]

I have not done so in the past,
but I've been told that in Ma. if you have sleeping area, some kind of cooking device, and a toilet on you're boat, you can consider it a 2nd home and write it off.
If this is true, what can be considered deductions besides interest if you have a loan on the boat
-Dock slip fee?
-mouring slip fee?
-excise tax?
ect--------- Ron

[Roger]

It's not Mass, but federal. As a second home, the only additional thing you can deduct is mortgage interest (loan interest if the loan is secured by your boat). Real estate taxes are already deductible. FWIW, Mass does not normally allow any deductions for your home or homes.

[Mr. Sandman]

Sure if it has a bed and a head it is a second home.

But you will probably run into something called AMT (the alternatice minimium tax). This gets me every year and I call the the stealth tax...no many how many deductions you have they get wiped out by this. Our tax system sucks. I am for a FLAT TAX with no deductions... this way you know everyone is paying their fair share and you can wipe out 3/4 of the irs.

[angler management]

I have also heard, because I trailer my boat and fill it up at the local gas pump.

85 Gallons here and there. You can submit to get the road tax portion back as well.

I did not use enough gas this year to go through the problems.

But you can look in to this as well.

[Mr. Sandman]

ooooh I would consult a tax guy before doing that...I bet there is a marine equiv or some boating tax buried in that pump price that is to re-coup the road tax. Keep in mind gas at the dock is a bit more $ then roadside.... Besides your talkin peanuts unless you have twin 454's and like to go real fast.

[Bob Senior]

Try this:

1. Get your Captain's license
2. Take out a few charters
3. Record the income
4. THEN, write off various boating expenses agains that income.

Oh, and check with your accountant before doing anything. In fact, take him/her fishing, but you better find them some fish.

[Recovery Room]

In MA, you can deduct the portion of gas that is Fed Excise tax (regardless of where it was purchased). It was 21 cents per gallon this past year. I've been told that it is going away, but it is still here. Here's the details from BoatUS site along with the info to get the forms from Mass department of state revenue.

Massachusetts: Recreational boaters can apply for a $0.21 per-gallon refund (before factoring in a 5% user fee on the total refund amount) of state sales tax when they purchase highway fuel for use in their boats. To claim a refund on the gas tax, one must file within six months of the purchase date, and include all original sales invoices with the application. For a diesel fuel refund, one must file the claim within two years of the purchase date and include all original sales invoices with the application.

The gas tax refund form, GT-9M and diesel fuel refund form, SFT-9, can be downloaded from the Internet by going to www.magnet.state.ma.us/. First, click on Taxes/Revenue, then click on Tax Forms and choose Miscellaneous Tax Forms. For more information, call (617)887-5070.

[Roger]

Originally posted by Recovery Room
In MA, you can deduct the portion of gas that is Fed Excise tax (regardless of where it was purchased). It was 21 cents per gallon this past year.

Just a minor clarification. The refund is for Mass excise, not federal. Regarding fishermen, the federal excise tax can be refunded for commercial fisherman using form 8849, Schedule 1. The federal excise tax was $.184 per gallon I beleive. I'm also pretty sure that the Mass refund is only on gas purchased in Massachusetts.

[fishsmith]

Good ole taxachusetts, here's your $.21 a gallon back consumer, but we'll hit your refund check for 5%