You can take the home mortgage interest deduction for one second home in addition to your primary home but you must itemize deductions. A boat is considered a second home for federal tax purposes if it has a head (bathroom) a bed (sleeping berth) and a galley (kitchen).
A boat is considered a second home for federal tax purposes if it has a head (bathroom) a bed (sleeping berth) and a galley (kitchen). You’ll need IRS Form 1098 to deduct the interest and also any points paid to secure a loan. If you work from your boat, you can take a home office deduction although that may raise a flag quickly.
Boat as a Second Home Tax Deduction You can take the home mortgage interest deduction for one second home in addition to your primary home but you must itemize deductions. A boat is considered a second home for federal tax purposes if it has a head (bathroom) a bed (sleeping berth) and a galley (kitchen).
Can a boat be a secondary residence for tax purposes?
Living at home doesn’t necessarily mean you have to be tethered to one place. For federal tax purposes, a boat or a recreational vehicle can be either your main or secondary residence, entitling you to take advantage of the same tax deductions as a homeowner of a typical house.
Is your yacht a second home for tax purposes?
Tacoma mortgage broker David Reitze plans to declare his 47-foot yacht a second home for tax purposes next year, allowing him to reduce his income by $19,200, the amount he pays in interest on the loan. He’ll also deduct his annual $3,600 state registration fee.
Is a boat considered a home for tax purposes?
If you’ve taken out a loan to buy the boat and the loan is secured by the boat, you might qualify to deduct the interest you pay on the loan as part of the mortgage interest deduction. If your boat has bathroom, cooking and sleeping facilities, then for IRS purposes, it qualifies as a home and you might qualify for a deduction on your taxes.
How many second homes can you own in the US?
You can have only one second home for purposes of the mortgage interest deductions. For example, if you have two houses, one of which is your primary residence and one that you use as a vacation home, you have to substitute your boat for your existing second home if you want to take a boat tax deduction.