Costs of Boat Ownership: Tax Breaks

Boat Ownership Costs > Taxes and Tax Breaks

In this series of posts, we’ve spent some time talking about the real costs of boat ownership. So far, we’ve covered Windham County Boat Insurance costs and projected annual maintenance. While paying sales tax and registering your boat within your state is a must, there are some tax breaks that apply to your boat that could put more money in your pocket. To get an accurate estimate of the money you can save with your boat, read the following article.

Using your boat as a second home.

Deducting the interest you pay on your boat loan by declaring the boat your second home is the biggest tax deduction there is for recreational boating. All you need to have on your boat to qualify is a sleeping place, cooking facilities, and a toilet (portable ones count). If you rent your boat out to others, you need to stay on it for at least 14 nights out of the year, or 10 percent of the number of days the boat was rented, says How Money Walks.

Earning money on your boat.

Any income you earn from conducting fishing excursions or sightseeing trips on your boat has to be reported to the IRS by law. However, this means that all of your relevant expenses, including fuel, equipment, and bait, can be written off at the end of the year.

Entertaining clients.

If you legitimately entertain clients on your boat, be sure to keep every receipt to prove to the IRS that your deductions are legitimate. Keep records of client names, the reason for the outings, their locations and dates, what your expenses were, and expected benefits of the meetings. You can deduct up to 50 percent of the costs of fuel, food, drinks, mooring fees, and tournament entry fees.

 

About Byrnes Agency

At Byrnes Agency we are proud to offer the complete watercraft insurance policies specifically designed to minimize your losses as a boat owner should your boating adventures go awry. We can also provide coverage for your personal property and fishing equipment in addition to protection against injury to you caused by an uninsured boater. Contact us today for more information about our comprehensive Windam County boat insurance policies.

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Dayville Office

Phone: (860) 774-85
394 Lake Rd
Dayville, CT 06241
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm

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Norwich Office

Phone: (860) 886-5498
6 Consumers Avenue
Norwich, CT 06360
United States
info@byrnesagency.com
Hours of Operation: Monday- Friday 9:00am-5:00pm